This is certainly a new one. According to Xbit Labs ATi has demonstrated the ability of their GPU's to process audio. I'm not sure if this will go anywhere, but it's kinda cool. Theoretically, audio capabilities on the GPU could allow graphics cards makers to multiplex audio signals into HDMI or DisplayPort outputs. On the other hand, currently computer mainboards are already equipped with built-in audio, which means, there is hardly any need in additional GPU audio capabilities. Still, theoretically, in certain game cases, when graphics, physics and audio are tightly combined, computing on a single device may offer some advantages. I get the feeling that this probably won't be coming out any time soon. Still a neat idea.
We'll have to wait and see. GPUs are very powerful, but they aren't exactly designed for audio. If ATi manage to pull something out of the bag, it could be pretty impressive. The GPU should have enough grunt for use in digital sequencing and synthesis. However I am not convinced it'd be better then a conventional sound card of the M-Audio calibre
