Intel and $100 laptop join forces

The laptop has already been put through its paces in some countries

Chip-maker Intel has joined forces with the makers of the $100 laptop.

The agreement marks a huge turnaround for both the not-for-profit One Laptop per Child (OLPC) foundation and Intel.

In May this year, Nicholas Negroponte, the founder of OLPC, said the silicon giant "should be ashamed of itself" for efforts to undermine his initiative.

He accused Intel of selling its own cut-price laptop - the Classmate PC - below cost to drive him out of markets in the developing world.

"What happened in the past has happened," Will Swope of Intel told the BBC News website. "But going forward, this allows the two organisations to go do a better job and have a better impact for what we are both very eager to do, which is help kids around the world."

Nicholas Negroponte, founder of One Laptop per Child, said: "Intel joins the OLPC board as a world leader in technology, helping reach the world's children. Collaboration with Intel means that the maximum number of laptops will reach children."

Intel inside

The new agreement means that Intel will sit alongside the 11 companies, including Google and Red Hat, which are partners in the OLPC scheme.

It will also join rival chip-maker AMD, which supplies the processor at the heart of the $100 laptop.

"Intel's apparent change of heart is welcome, and we're sure they can make a positive contribution to this very worthy project for the benefit of children all over the world," read a statement from AMD.

Software developed for the Classmate could run on the XO

Initially there are no plans to switch the processor to one designed by Intel. However, the servers used to back-up the XO laptops, as they are known, will have Intel technology at their core.

Decisions about the hardware inside the XO laptop would be made by OLPC, said Mr Swope.

"OLPC will decide about which products they choose to offer or not offer," he said.

OLPC, however, indicated that it would consider using Intel chips in its machines in the future.

Walter Bender, head of software development at OLPC, told the BBC News website that he believed OLPC would eventually offer different computers with different hardware.

"I think we will end up with a family of products that run across a wide variety of needs," he said. "Intel will be part of that mix."

Price test

In addition, the partnership will have a practical pay off for software developers.

"Any software you build is going to run at least on our two platforms," said Mr Swope.

An application developed for the XO laptop should work on the Classmate and vice versa.

"That's the exciting thing for me," said Mr Bender.

Currently both laptops are being tested in schools around the world. In parallel, OLPC is finalising orders for the first batch of computers.

Participating countries are able to purchase the XO in lots of 250,000. They will initially cost $176 (£90) but the eventual aim is to sell the machine to governments of developing countries for $100 (£50).

Intel says it already has orders for "thousands" of Classmates, which currently cost over $200 (£100).

Like the OLPC machine, Intel expects the price to eventually fall.

'$100 laptop' sparks war of words

The $100 has already been tested in many countries

Chip-maker Intel "should be ashamed of itself" for efforts to undermine the $100 laptop initiative, according to its founder Nicholas Negroponte.

He accused Intel of selling its own cut-price laptop - the Classmate - below cost to drive him out of markets.

Professor Negroponte, who aims to distribute millions of laptops to kids in developing countries, said Intel had hurt his mission "enormously".

Speaking to US broadcaster CBS, Intel's chairman denied the claims.

"We're not trying to drive him out of business," said Craig Barrett. "We're trying to bring capability to young people."

Mr Barrett has previously dismissed the $100 laptop as a "gadget".

Speaking to the BBC News website earlier this year Professor Negroponte said: "The concept has received a lot of criticism and yet after that criticism they are either copying it or doing things perfectly in line with the concept.

"Yes people laugh at it, then they criticise it, then they copy it."

Business practice

Both Intel and Professor Negroponte's not for profit organisation, One Laptop per Child (OLPC), have developed a low cost, robust laptop aimed specifically at school children in the developing world.

Intel's Classmate PC runs Microsoft Windows and Linux

There are various differences in both the hardware and software, but Professor Negroponte believes the main problem is that his machine uses a processor designed by Intel's main competitor, AMD.

"Intel and AMD fight viciously," he told CBS. "We're just sort of caught in the middle."

Professor Negroponte says Intel has distributed marketing literature to governments with titles such as "the shortcomings of the One Laptop per Child approach", which outline the supposedly stronger points of the Classmate.

Mr Barrett told CBS: "Someone at Intel was comparing the Classmate PC with another device being offered in the marketplace. That's the way our business works."

He dismissed claims that Intel was trying to put OLPC out of business as "crazy".

"There are lots of opportunities for us to work together," he said.

Price drop

Professor Negroponte's project is currently in a critical phase.

Countries have until 31 May to place their orders for the first batch and will be able to purchase lots of 250,000.

They will initially cost $176 (£90) but the eventual aim is to sell the machine to governments of developing countries for $100 (£50).

Intel says it already has orders for "thousands" of Classmates, which currently cost over $200 (£100).

Like the OLPC machine, Intel expects the price to eventually fall.

$100 laptop could sell to public

By Darren Waters Technology editor, BBC News website, Las Vegas

The laptop will be delivered to countries in the summer

The backers of the One Laptop Per Child project are looking at the possibility of selling the machine to the public.

One idea would be for customers to have to buy two laptops at once - with the second going to the developing world.

Five million of the laptops will be delivered to developing nations this summer, in one of the most ambitious educational exercises ever undertaken.

Michalis Bletsas, chief connectivity officer for the project, said eBay could be a partner to sell the laptop.

"If we started selling the laptop now, we would do very good business," Mr Bletsas, speaking at the Consumer Electronics Show, told BBC News.

TOMORROW'S WORLD BLOG I was told that the executive had mis-spoke Darren Waters, BBC News website tech editor Read Darren's entry in full

"But our focus right now is on the launch in the developing world."

Nicholas Negroponte, chairman and founder of the OLPC group, emphasised that the launch to the poorest parts of the world was the organisation's main task.

Of plans to sell the machine, he said: "Many commercial schemes have been considered and proposed that may surface in 2008 or beyond, one of which is 'buy 2 and get 1'."

Durable

The laptop has been developed to be as low cost, durable and as simple to use as possible.

The eventual aim is to sell the machine to developing countries for $100 but the current cost of the machine is about $150.

The first countries to sign up to buying the machine, which is officially dubbed XO, include Brazil, Argentina, Uruguay, Nigeria, Libya, Pakistan and Thailand.

The XO's software has been designed to work specifically in an educational context. It has built-in wireless networking and video conferencing so that groups of children can work together.

[The industry] should look to connect the next five and a half billion. Michalis Bletsas, chief connectivity officer, One Laptop Per Child

The project is also working to ensure that children using the laptop around the world can be in contact.

"I'd like to make sure that kids all around the world start to communicate. It will be a very interesting experiment to see what will happen when we deploy a million laptops in Brazil and a million laptops in Namibia."

'Glue'

The OLPC project is working with Google who will act as "the glue to bind all these kids together".

The machine is close to a final design

Google will also help the children publish their work on the internet so that the world can observe the "fruits of their labour", said Mr Bletsas.

He said that the hope was to put the machine on sale to the general public "sometime next year".

"How to do that efficiently without adding to the cost is difficult," he said.

"We're discussing it with our partner eBay. We need to minimise supply chain cost , which is pretty high in the western world."

Philanthropic organisation

Mr Bletsas said that a philanthropic organisation would be formed to organise the orders and delivery of the laptops.

"It's much more difficult to do this than making the laptop," he said.

The aim is to connect the buyer of the laptop with the child in the developing world who receives the machine.

"They will get the e-mail address of the kid in the developing world that they have, in effect, sponsored."

Mr Bletsas was speaking amidst the festival of consumerism taking place on the show floor of CES.

He said he hoped that the laptop project would help children enrich their lives to the extent that one day they could become consumers of the types of technologies on display in Las Vegas.

'Castigated'

But he castigated the industry for being unambitious in its plan to "connect the next billion people".

"They should look to connect the next five and a half billion.

"The way to do it is not to try and deploy tried and trusted technology but to try and develop technology specifically targeted to the developing world."

He said that OLPC was ensuring that laptops were being deployed to areas where there was internet access.

"We are trying to help the governments - that ranges from donating resources, to making sure that we work with them and that they don't consider the laptop as something that can work in a disconnected environment.

"It's vitally important that children are connected. My ambition is that we will get them connect to a vast amount of information that is unavailable to them.

"It will stimulate their interest in looking further - not waiting for some teacher or an adult."