A few days ago, an article appeared on the Japanese website 4gamer.net about an in-development PowerVR GPU, the PowerVR RTX, which is said to have integrated ray tracing hardware from Caustic Graphics (acquired by Imagination Technologies in December 2010). The article is in Japanese, and the Google translated version is barely understandable:
http://translate.google.com/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Fwww.4gamer.net%2Fgames%2F017%2FG001762%2F20110920023%2F
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