I think nowadays gpu's are RISC processors, and as such they have incredible raw power at what they do. At some point someone thought of using that raw power for more than just pretty graphics, so now gpu's are starting to be used for processing functions much like cpu's.
With a little of engineering the Stanford devs ported their application to be able to run on the limited instructions of the ATI gpu.
(I wonder if the gpu's can be programmed to show graphics at the same time that they're crunching...)
But anyways, gpu crunching is the new rage, because those sweet RISC processors pack an incredible power that is being wasted 99% of the time. (How much of a gpu's power do you think it's being used when you're browsing our team's forums?)
And... word has it that they even beat cpu's at their own game (crunching). :D
(I still need to see some stats comparisons on that...)