I'm just afraid Nvidia's respond will be : "let's kill all Otoy guys at sight

If I understand correctly the term retro-engineering used in the article : Otoy tore apart one of nvidia's biggest asset in the GPU battle, Cuda, which I think is proprietary code, subject to copyright laws, to make it usable on every chip there is.

Is Nvidia planning to buy Otoy? To keep the development of Otoy's advanced GPU technologies in-house?
If it's not that, it's a very very bold move from Otoy.