IIRC Intel made Havok free to use for commercial uses and this had something to do with CPU vs. GPU physics debate or with trying to undermine NVidia's PhysX back in the day. It was big news when this happened. Microsoft has apparently ended this?
There's a few FOSS physics engines like Bullet and Newton Game Dynamics.
Bullet is kinda more famous of these two since it's in a few AAA games and many others engines and such like Blender, GTA 4 and 5.
Newton Game Dynamics is used by Frictional in their own HPL Engine (for Penumbra, SOMA, Amnesia). First Penumbra game caused some hype due to how they used physics for doors, drawers, combat, etc. (it's a horror game so it made sense to let you slowly open the door partly or make you scramble to rummage through drawers).
PhysX got open sourced for non-console platforms very recently too (proper BDS license, the 3 clause one, which has huge implication, no backsies or EULAs).
I've no idea how hard it is to implement a physics engine personally but it's clearly not that easy and depends on its features like does it have fluids, soft bodies, cloth, etc. anyway. And it doesn't have to be on the GPU necessarily.
And we're spoiled for choice these days, there is no reason for someone (who isn't a huge company with a good reason) to write own physics or do it from scratch, there's no catch with a FOSS library. I'm not sure if Square Enix's Crystal Tools engine has its own custom physics and that engine as a whole had very mixed results.
46 minutes ago, ritzmax72 said:
Do large companies have this trend of buying anything they see getting heat in market irrespective of analyzing why they would need it for?
Ahh.. It happens sometimes but more often the acquisitions make some sense in other way like Oracle buying Sun or Ksplice or Atlassian buying Trello, IBM buying Red Hat, Red Hat buying JBoss, etc. I can think of tons of ones like these but not of many that are like you said (Intel kind of wasn't IMO for reason I said above). Maybe Facebook buying Occulus or Microsoft buying Mojang would fit these "get something just because it's hot".