Intel leaves the OLPC after dispute

Well, that was short: Intel has announced it is leaving the One Laptop Per Child project.

The news, first reported Thursday by The Wall Street Journal in an e-mail alert, comes just six months after Intel and OLPC founder Nick Negroponte agreed to settle their differences and join forces, united in their goal to bring computing power to emerging nations. The breakup comes after Negroponte apparently wasn't willing to share Intel with others.

Khaled Hassounah, director of the OLPC in Africa and the Middle East, demonstrates an XO laptop to a classroom of students in Nigeria.

(Credit: Ahmad Dan-Hamidu)

According to Intel, Negroponte asked the chipmaker to stop selling its Classmate PC while it was part of the OLPC, which is currently shipping its XO laptop based on a chip from AMD. The Classmate PC was one of the sources of friction between Negroponte and Intel before they joined forces in July. Negroponte went on 60 Minutes in May and accused Intel of dumping Classmate PCs below cost in order to keep OLPCs out of the hands of needy children.

Intel and OLPC were working on an Intel-based version of the XO laptop, according to Agnes Kwan, an Intel spokeswoman, but the OLPC insisted that Intel end its production of the Classmate PC. Even more surprising, Intel is saying that the OLPC actually asked the chipmaker to stop working with any company that produces low-cost laptops, such as Asus' Eee PC.

"We have said for a long time that we don't believe there will be one single solution" for getting laptops in the hands of poor children, Kwan said. "There are some basic fundamental differences in our approaches."

It was nighttime in frigid Cambridge, Mass., home of the OLPC when the news broke. No one answered the phone at the company headquarters, and an e-mail to public relations representatives seeking comment on Intel's allegations was not immediately returned.

Intel's Classmate PC

(Credit: Michael Kanellos/CNET News.com)

If this went down the way Intel is claiming, Negroponte's move is baffling. The OLPC project hasn't exactly been a huge success, but the goal is noble, and the "Give One, Get One" program seemed to generate some interest among tech-savvy do-gooders.

But the move sort of reminds me of NBC's Jeff Zucker, demanding a cut of iPod revenue in return for selling NBC shows through iTunes at Apple's pricing terms. Did the OLPC really think Intel would stop supplying other companies with low-cost chips simply because it asked? It would be sort of like if Dell asked Intel to stop selling HP and Apple Core 2 Duo chips, simply because Dell thought its latest XPS laptop was a more righteous product.

I'll update if I hear back from the OLPC, because it's quite possible there's much more to this story.

[savagesteve13]

It is just a demonstration of Intel's greed.

They never really cared about helping the poor. It was just another potential money cash cow they were planning to get into, and they quickly left it when they realized that there wasn't money to be made.<br />Negroponte was never into this for money in the first place.<br />At least intel left before destroying Negroponte's OLPC initiative.

[dpcrook]

greed - helps the poor

naked capitalism can be the great redeemer to "the poor".<br /><br />unless you consider the corruption that goes on in Kenya and <br />Nigeria to be the answer in "helping the poor" in those <br />geographies... <br /><br />do you have a job and if so are you employed by others; if so <br />you are benefitting from someone else's "greed". if you run you <br />own business, then you are probably primarily motivated by <br />"greed". if you are still matriculating, once you remove yourself <br />from the great breast of knowledge, you may come around. <br />non-profits may work and help social conditions by large, but <br />their motivation s need to be strong enough to be relevant in a <br />for-profit market that exists.

[PT78]

Is ignorance bliss?

You think Intel is exiting the market? Think twice... they exist to make money, and that's what they'll do. And there's money to be in this market. Can you really blame them for not accepting NN's terms? They are ridiculous... and if his vision (and legacy)is to succeed he should reevaluate his approach.

[suyts]

Did you read the story?

Intel left because Negroponte was objecting to Intel making money on an UNRELATED project. If the story is true, it is just a demonstration of an inept, failed ideology.

[Andy kaufman]

If Negroponte was never in it for the money

why would he charge $200 for a laptop that he promised to sell for $100?<br /><br />If Intel can make good on a promise to make a $100 Classmate laptop, why should they stop selling it if the OLPC costs $200 and is too expensive for third world nations to buy, that they have to launch a "buy one get one" special at $400 to get one OLPC laptop, and then a third world nation child gets the other one?

[Penguinisto]

No, it's a demonstration of ego.

Here's why:<br /><br />[i]"Even more surprising, Intel is saying that the OLPC actually <br />asked the chipmaker to stop working with any company that <br />produces low-cost laptops, such as Asus' Eee PC."[/i]<br /><br />1) Negroponte's project is not the one and only solution. <br /><br />2) Demanding that a semiconductor company stop making/<br />supplying [i]all[/i] low-cost laptop chipsets for any other project <br />is stupid. No, really - it's a stupid demand.<br /><br />This isn't an OS thing, either - Asus' Eee PC is also linux-based. <br />It costs $400 at base... not exactly something you sell to schools <br />in Africa...<br /><br />I actually like what the OLPC is doing. They're providing the one <br />thing that may help the Third World get out of their mess - <br />education. But the demand that a corp give up a huge chunk of <br />their business --even non-related business-- just to <br />participate? <br /><br />Negroponte is basically telling soup kitchen volunteers that they <br />must work only in the soup kitchen, hold no jobs as a cook <br />elsewhere, or else 'get the hell out'. Heaven Forbid that a fast-<br />food cook ever volunteer to work in the soup kitchen, right? <br />Might provide competition, and stuff... <br /><br />You wouldn't tolerate a soup kitchen making that demand, and <br />you certainly wouldn't call the cook "greedy" for preferring to <br />continue keeping his job. So why do you suddenly lambast Intel <br />for doing the same thing?<br /><br />Negroponte needs to check his ego, and fast... he's supposed to <br />be focused on charity, not on making sure he's the only guy who <br />can give a laptop to schoolchildren in need.<br /><br />/P

[magicman73]

When did Greed become bad?

I'm sorry Steve but I am confused here. The purpose of any business is to generate profit. There is no other reason for a business to exist. OLPC was making utterly unrealistic demands on Intel and Intel made the right choice in leaving. I find it extremely obtuse of you to say that Intel never had any intention of helping the poor. Intel did not leave because they suddenly came to a realization that there was no money for them to make. They left because of the unrealistic demands made upon them by OLPC. I'm also surprised to find that you seem to support OLPC's pursuit of a monopoly whereas I am fairly sure that you would find Microsoft's use of their monopolistic powers to be unfair.

[gggg sssss]

must be a govt emplyee

hate to call you a worker. Living off the tax dollar that arises from other's hard work to make a profit.

[Andy kaufman]

Who cares who makes a $100 laptop?

OLPC is charing $200 for their $100 laptop. Intel is charging $100 for their Classmates laptop.<br /><br />The whole goal of OLPC was to get a $100 laptop to poor nations, and instead they jacked the price to $200. Failing that, Intel made the Classmate to reach that $100 mark. Seeing Intel succeed where they failed, OLPC got mad and told Intel to stop making the Classmate and supplying chips to cheap laptop makers, so OLPC can continue on in their MONOPOLY to third world nations and overcharge them $200 for a $100 laptop.<br /><br />Third world nations need a $100 or under laptop. OLPC cannot reach that goal, but Intel, and Asus and others can. But OLPC wants to SABOTAGE the efforts of the other companies so they can control what third world nations get and at what price. Intel was helping out, but OLPC tried to BACKSTAB them so Intel pulled out.<br /><br />Who cares who gets the $100 laptop to third world nations as long as they get them. OLPC is ripping people off by overcharging them $100 more than they promised to charge them for the OLPC project.

[bbbl67]

Not quite

Intel's Classmate is still more expensive than the OLPC, but the price difference is not quite as large as it used to be. However, Intel is definitely not selling the Classmate for $100, not unless it's selling it at a loss. So at this moment, nobody selling a $100 laptop yet.

[thecomputerdoc1]

Well said

I think OLPC lost sight of the goal.

[bbbl67]

Did OLPC really think?

"Did the OLPC really think Intel would stop supplying other companies with low-cost chips simply because it asked? It would be sort of like if Dell asked Intel to stop selling HP and Apple Core 2 Duo chips, simply because Dell thought its latest XPS laptop was a more righteous product."<br /><br />Tom, Dell would've definitely asked Intel to stop selling an Intel-branded laptop or desktop! So would HP and Apple. Intel is just supposed to be a component supplier, not competing against its own customers.

[jjnitzh]

What planet have you been on for the last 10 years?

Intel "the CPU company" rocked everyones world when they started building chpsets, then motherboards, then NIC's then integrating everything but the kitchen sink into their mobo's and chipsets. Many current laptops are 75%intel, everything but the HDD, keyboard, case and screen. They've been on a straight track to producing complete systems for the last decade. They still sell chipsets to other mobo companies. Selling complete machines while still supplying manufacturers is no different.

[rapier1]

So basically

If I make screws I should only sell them to one company? You realise that makes no sense right? If some company wanted to corner the market on my screws then they can buy the entire production run - like Apple did with the 1.8" hard drives. But just not sell them to other companies because one customer asked? Thats idiotic unless I'm being properly compensated.

[john55440]

It seems that Negroponte cares more about...

If super-cheap laptop computers get into the hands of poor children, what difference does it make who manufactures/sells them?<br /><br />It seems that Negroponte cares more about moving *his* particular computer, than he does about his stated goal of helping poor children.

[slickuser]

I agree 100%

Negroponte wants fame. I don't think he cares about children.

[Penguinisto]

I actually agree.

If this is all true, then Negroponte needs to check his ego.<br /><br />/P

[DarkPhoenixFF4]

Yeah, according to Intel...

Who, let us remember, views this whole situation as a competition between rival market forces. In fact, their claims sound more like what you would expect from a company competing in a market, which is why I'm skeptical of Intel's claims. OLPC is not a company and has no incentive to act like one.

[rdupuy11]

it's a philosophic difference

Intel believes in free markets, to lower prices, competition to bring about innovation and change.<br /><br />Negroponte, in short, does not.

[DarkPhoenixFF4]

Yeah....

Intel believes in the free market about the same amount as Microsoft does; when the odds are slanted in their favor, as in the processor market right now.<br /><br />But now I'm sure you're going to tell me that the reason no one can seem to make inroads against Intel is because everyone else is incompetent...

[slickuser]

Its apparant that Negroponte has no support

Intel has been giving away millions to schools and children in developing countries. So, Intel can easily reach more needy children with their classmate PCs and through other community activities.<br /><br />Negroponte, take a hike!

[DarkPhoenixFF4]

Wait, Charity Contributions == Ignorance Of Past Misdeeds?

Um, it doesn't matter how much Intel contributes in general if what they're doing is flat-out wrong, or they're doing it for the wrong reasons. And, make no mistake about it, Intel's interest in this is purely financial. Like Microsoft's involvement in this, Intel started dumping the Classmate because they feared a world where Intel processors don't power most computers, just like Microsoft feared a world where everyone didn't run Windows.<br /><br />OLPC is a CHARITY, Intel is a BUSINESS. You believe the business accusing the charity of acting like a rival business? Does this sound logical to you, at all?

[jmdunys]

Amazing

It's just amazing how quickly people jump to vilify someone else without having all the facts.<br /><br />Before passing judgement, the most elementary of respect is to listen to what the other side has to say.<br /><br />As for those who praise Intel's integrity and attitude in the matter, they are forgetting how in the past, the company used its position to try run competitors out of business and that numerous cases were filed against it.<br /><br />I am NOT saying that Intel is doing this right now. Just wanted to remind all of us that NO-ONE is pure and holy.<br /><br />Let's just see what transpires from both sides

[mikestatic1]

Talk about Missplaced, Foolish Efforts...

One Laptop Per Child - allowing children in undeveloped countries to access the internet. Why? So they can sell their laptop on eBay to buy something that they really need. FOOD. Negroponte is a fool, plain and simple.

[pfletcher]

and while we are it

what about the kids in THIS country who could benefit from the low cost

[The_Decider]

Speaking of foolish

You don't seem to understand that most developing countries have the basic necessities. They are not starving.<br /><br />What they need is education.<br /><br />Cheap laptops(from whatever source) is needed.<br /><br />Apparently, many people in developed countries are in desperate need of education also.

[dwardell]

Not Nobel, Either

The article editorializes that the Negroponte scheme is somehow "noble." Apart from the comment about basic necessities, such as food, made by a prior post, even as concerns education, trying to place laptops in developing countries is hopelessly naive--at best.<br /><br />Laptops of any description are temporary, delicate, and assume a level of infrastructure and support most societies (including the US) are unwilling to spend on education.<br /><br />What developing countries truly need are the essentials--more and better textbooks, more and better teachers, more and better practical job training (as opposed to Internet surfing) ...<br /><br />You get the idea.

[bbbl67]

Not everyone just needs food

There's different levels of poverty in the world, and not all places are in starvation. In places which aren't starving, the next step of necessity is education. These days, education requires computers, not just books. For example, it's a lot easier to demonstrate a concept with a video running on a computer rather than a still picture drawn on a book.

[Ganymede28211]

Good for Intel.

I am certainly no Intel fanboy, but if the bullets presented in the article are the facts of the situation... Then GO INTEL!<br /><br />The OLPC is a mere novelty in developed countries and in the hands of the people it's intended for... well, while it is empowering... it doesn't match the real world... It's promoted as a computer. My BlackBerry is a computer... but i don't call it that. I call it a phone. The OLPC is NOT a computer. It may mimic a computer and run many applications... BUT this is a upscale fisher price pre-school toy.<br /><br />INTEL should have just skipped em to begin with.. In fact. If there's any sense at all out there... Both Intel and AMD should never even think about this product. It's A TOY! Put a Spiderman Logo on it and sell it at Wal-Mart!<br /><br />If the goal of OLPC was to create an expesive "LEAP FROG" then CONGRATS! <br /><br />As a unit in itself the OLPC is TERRIBLY EXPENSIVE.<br /><br />Consider that it's nearly 200 dollar. <br /><br />Now consider for less than 400 I purchased a dual core 1.7 ghz intel based laptop with a 15" wide screen, dvd burner, 120 gb hard drive, 2 gig of ram, wireless, gigabit, 4 USB ports, sound, etc etc etc... including Windows Vista too.<br /><br />The was a BRAND NEW RETAIL price... The bang for my buck was very realized in comparison to the OLPC.<br /><br />Now, one might say, well under 200 is far different from under 400. Yes, but take my $400 laptop (ok the one i bought for xmas as a gift, not mine anymore) put in a 20 gig drive, a 10" LCD panel, a slower single core processor. Remove the infared and so on. How soon before it's competing with the OLPC? Especially if you drop the OS in favor of linux (to compete fairly with the OLPC).<br /><br />I'm TIRED of hearing about the OLPC. It's junk. It's a toy. We are all riled up about a 200 dollar toy for the poor. How much sense does that make?

[lawrencewinkler]

Really, Ganymede28211!

You have listed many many details about the OLPC -- it's a toy, <br />and easily overpriced one at that.<br /><br />But, given your rhetoric, I doubt very much if you've ever used <br />one, less seen one first hand; and clearly the certainty of your <br />position seems inversely related to your knowledge. <br /><br />Your described $400 machine sucks energy by the ton and <br />wouldn't survive one day in the environments the XO is designed <br />to function in. <br /><br />The XO can be hand charged via a crank, pedal or pull-cord?or <br />recharged by a directly connected solar panel. I suggest your <br />$400 machine can be recharged by plugging into 120V <br />centralized power grid only. The XO battery can be recharged <br />over 2000 times -- substantially more your hot $400 machine. The keyboard and touchpad?which are dust and water resistant<br />?has some special keys for additional functionality and is <br />configured to the language of the region. Your $400 machine <br />would be useless within the first hour and is useful for only <br />English language speakers -- I suppose that's okay since <br />English is God's language. <br /><br />The XO screen renders in both color and black&#38;white and can be <br />viewed even in direct sunlight. Your $400 machine wouldn't be <br />usable if there was any glare from the window of your $2k+ <br />home.<br /><br />Your $400 machine has a fan, whose purpose in the <br />environments that the XO will function in, will be to permanently <br />disable your machine. The XO has no fan and therefore is better <br />sealed -- it runs with much less energy and heat than your $400 <br />behemoth. <br /><br />"Get a clue" would be my recommendation!

[sumobaba]

What about the donors?

So now what happens to those donors that already "donated" and are waiting for their laptops as well as word about whether the needy child received his or her own laptop donation?

[bbbl67]

They will get their laptops

The laptops already existed, and the donors will receive their laptops; Intel was not involved, the chips all came from AMD. Intel was only hoping to become OLPC's chip supplier and to replace AMD, but now they will simply continue with AMD.

[preacherx]

Pull our Heads out ...,

Forget the 1 laptop per child... how about one sandwich per child, or 1 immunization per child? How about we save a life before we give them a product for more porn and playing... jeez.

[The_Decider]

riiight

Another misguided person who thinks that all kids in developing country are hungry and sick.<br /><br />There are millions of hungry and sick people in America, I guess we should stop progressing as well.

[Penguinisto]

Charity vs. Eduication.

Simple charity won't do. <br /><br />Sure, we can feed everyone on the planet today, and/or give every child a vaccination round. But what happens tomorrow morning? The folks you fed yesterday will still be hungry. The kids born after all those immunizations were given will still be without them.<br /><br />Education is one of the very few avenues to help the poor and the needy get permanently out of the situation they are in. <br /><br />These things aren't toys, they're tools.<br /><br />/P

[danielz40]

OLPC

This is about the stupidest program I've ever seen! Aside from the fact that by the time they get it going, a child laptop will cost less than $200 anyways, the last thing a child in a poor developing country needs is a laptop. The program sounds noble, but why don't you just pool that money together and show them how to grow food, get clean water, build them a computer lab with desktop PCs, etc. Why does a poor child need a laptop? Christ, Best Buy can sell a laptop for $299 and still make money. It sounds noble, like the leave no child behind program. Don't we have better ways to take care of our children? Half of them will probably take their laptop and sell them for something silly like food or water.

[The_Decider]

WTF?

What is with all you people that think that developing countries lack the necessities? <br /><br />A few do and this project is not aimed at them. <br /><br />Most do NOT!<br /><br />What they lack is education.<br /><br />A third world country will go nowhere without an educated citizenry. This is vital.

[clumpidy]

News or Editorial

One issue I have with this story is the writer's decision to stop reporting and switch to editorializing towards the end. I had the same issue with the recent Washington Posts article on the RIAA law suits.<br /><br />I prefer to get the facts from news articles and make up my own mind about who to side. I appreciate it when a writer takes the time to get as many facts as possible (and make sure they're correct). I just don't want to read "It would be sort of like if Dell asked Intel to stop selling HP and Apple Core 2 Duo chips" unless this is part of a question that OLPC had responded to.

[tenbosch]

Agreed, but...

Negroponte is frustrated. He's frustrated because he wants to get all the big names in tech to get behind his idea/vision. He's doing this for the good of children. If all the tech gods got behind the idea, it just might meet the original $100 cost. It was never intended to be about competition, but supplying those in need with something. The costs and subsequent ROI on these devices is supposed to go back into R&#38;D to further develop the capabilities and reduce costs.<br /><br />To some extent, Intel is capatilizing on the idea. Not necessarily a bad thing. Ultimately, this competition may also help reduce the costs.<br /><br />On another topic. I'm troubled that this is being touted as a PC. I have played with the device and I feel that it's rather toyish. It could be just as beneficial to supply these kids with a similar device that offers educational programming and entertainment value. If we really wanted to give them a PC, it should be something that is used in mainstream. Like a true Windows OR LINUX OR Mac machine.

[DoubleDD]

Needy kids

There are needy kids in America that don't have laptops.

[DoubleDD]

Free Market

If Intel wants to continue selling the low-end laptops - let them! In America we have a free market economy. And if Neo wants to find a manufaturer who will succumb to his ridiculous demands - more power to him. B2B economics applies even to non-profits.

[3tire]

?

Where DO you righteous guys come from? If only the world knew <br />what you knew. Suddenly all would be great with angels singing. <br />There would be food and Wii's for everyone and .....

[cybervigilante]

A good idea ruined by a greedy jackass

From what I read about OLPC, it's run by a jackass. This is typical of many organizations in that part of the world. They claim to want to assist the needy, but end up assisting the ego and pocketbook of their founders. This bum is obvkously more interested in Control - which will lead to more funds to skim - than in actually helping children. It's a shame when bums use people of good intentions that way.

[bbbl67]

cybervigilante

"This is typical of many organizations in that part of the world. They claim to want to assist the needy, but end up assisting the ego and pocketbook of their founders."<br /><br />Just where do you think OLPC founder, Nicolas Negroponte, comes from? He's an American, living in America, and used to be an MIT professor. So it's really funny when you refer to "that part of the world", which would be the United States. Perhaps you think that's the way business is conducted in the US, and you could be right. :-)

[DarkPhoenixFF4]

Um...

Because INTEL of all companies says so? Intel is halfway in bed with Microsoft in their goal to monopolize computing; them accusing anyone else of being interested in money first is laughable.<br /><br />And obviously you have no knowledge of the project or its founder, outside of mainstream tech press. Here's a clue for you: mainstream tech press thinks the concept of OLPC is a huge waste of time and should be buried. That said, do you think they're going to give you an accurate rundown on the project? Of course not.<br /><br />Though I'd have to agree with you that a lot of American organizations claim to want to assist the needy, but are really only interested in increasing their profit line. Like Intel and Microsoft.<br /><br />Now, to go to the facts; no one told Intel to stop selling anything. What was requested was that Intel stop going to countries considering ordering the OLPC laptops and telling them of all the "major defects" in the system, and using their position on the BOARD as evidence that they would know. In short, Intel only joined the OLPC board so they could use it as a marketing technique for the Intel Classmate...

[cybervigilante]

predatory bum

How many times have we seen this in third-world nations? A predator claiming to be a do-gooder, gets rich as hell. It's the most clever scam of all. The old wolf in sheep's clothing.

[shanedr]

I think you have the complete story

When I first heard of OLPC I thought it was a case of selfless devotion to an ideal. I have since come to believe that it now more ego trip than a service to poor child in third world countries.<br /><br />Most likely it will be Intel and the rest of OLPC's competition that brings the third world into the computer age. A great idea now being destroyed by one man's ego.

[DarkPhoenixFF4]

Bzzt!

First of all, this is only half the story, of course. Intel is spinning it, like usual.<br /><br />And quite frankly, I wouldn't want Intel and Microsoft bringing ANYBODY into the computer age, considering the general damage they've done to computing in general already. It is estimated that Microsoft alone has cost the computing field 20 years of advanced knowledge due to their obsessive quest for monopoly control of all computing.