I expect they will do very much what Imagination Tech does now with their PowerVR graphics cores. License them to SOC designers who integrate them with a CPU (invariably ARM) and other peripheral cores (eg. DSP, Ethernet, I/O, etc) and then get someone like TSMC or Samsung to fab the silicon (since most chip designers are fabless).
>(invariably ARM)
Aside: Imagination Tech recently acquired MIPS.
There's also a PowerVR core in some of the Intel Atom chips.
If I had to guess, I'd say they provide an IP to the customer. Depending on the size and budget of the customer, they offer a premade IP, or semi-custom IP.
No, it's about letting others integrate NVIDIA GPUs into their CPUs/SoCs/etc.