Before your eyes glaze over with boredom at the news that Imagination Technologies has acquired Caustic Graphics, listen to this first: Imagination, as you know, makes the iPhone's GPU. Caustic is famed for brilliant 3D graphics. See the connection?
Imagination Technologies, which was responsible for the PowerVR SGX GPU chip in the iPhone 3GS, just announced the next version in the same line. Hence, this might be the next-gen iPhone GPU. And it's a nice chip.