Nvidia purchased the company that was creating chips that handle the Physics effects in games. Those chips are now a proprietary thing added to their GPU's. Chips that handle codecs or specific instructions at the hardware level are so much faster than say a CPU doing it through software. There is no way around using Physics in a game without having an Nvidia GPU and taking a performance hit. In fact KF2, you can't even see some of the effects since it is not available to AMD GPU's.
Just to add some information to this....
Nvidia purchased the company Ageia Physx. Ageia was founded in 2002. NVidia made the purchase in 08.
Nvidia does not use Ageia "chips" on the GPU. They purchased Ageia for the software more so than the hardware. Nvidia Cuda cores handle the work that Ageia's PPU (Physx Processing Unit) could do. So there was no need to add a PPU to the PCB of the GPU.
Actually there are several older games that you can still use Ageia PPUs with, the most recent would be Ghost Recon Advanced War Fighter (2009) or the super hit title Unreal Tournament 3 (2008) with the Physx Map pack mod.
The Performance of the Ageia PPU was about the same as what a GT 9800 could do. In todays standard, that's weak. It was actually weak when released. The PPU was just barely big enough. Ran hot too.
The 8 series cards, ie: GTX 8800 Ultra, where the first cards to support Ageia/Nvidia Physx. Since we where just getting into quad core processing, you'd almost need the Ultra to enjoy the physx with some decent detail in the game.
The PPU or Cuda cores take a heavy offload from the CPU. Because it runs it's own thread and the Cuda cores are more efficient than a processor at this type of processing, this helps add particle count and randomness. The particle is now free to fall where it wants to instead of a set destination.
The Ageia PPU was a RISC processor.
I had 3 of them (multiple over) through the years. Burned up a couple of them too.
Asus PPU at 533mhz
DELL PPU at 500mhz
BFG PPU at 500mhz
Any Hoot. About the AMD cards and no NV Physx.
There was/is a way to run Physx with AMD GPU. I did it once or twice but with much older hardware than most of us use today. In a nut shell you install the NVidia card drivers including physx. You must copy and save the physx files including any in Win32. Then you uninstall the NVidia drivers and put the Physx files back where they belong except with one certain file in exception that needed to be placed elsewhere. (I do not remember exactly....) I believe the AMD dedicated graphics card drivers are installed After this procedure. But like I said, it's been a long time. quite some years now.
But for the most part and what I noticed through the years is people are not concerned about particle count. It's about that fine fine picture. Can we game 1440 yet? how clean can we get it all to look before we decide, you know what??.... wouldn't it be neat if there was 5,000 particles flying through the air? Total environmental realistic physics where size, weight, momentum, gravity, resistance and more actually make the game "feel" more realistic.
If Nvidia was smart, they could design a PPU for AMD users.......