Tony Tamasi, Senior Vice President for Content and Technology at Nvidia and the man responsible for the strategic direction of the company’s graphics processors has told Fudzilla that Fermi could run an OS.

Don’t get all that excited you cannot really run Windows on Fermi GT300-based GPU, but if you would make a heavily optimised Linux it could potentially run on Fermi. So tweakers, this will be a fun task for you.

This answer the question what is going on with Nvidia’s CPU as Fermi is a GPU that starts to get a lot of interesting features of a CPU which will surely help it in the computing world. Fermi won't replace a CPU as “you will need a CPU to run an OS” and this is what Jensen said more than once at Nvidia's GPU technology conference.

With this in mind, GT300 - Fermi is definitely something more than just a gaming chip called GPU, it’s a CGPU where C in our opinion should be stand for computation. We are sure that the new architecture that comes in roughly two years will get even more CPU features, if necessary.