The reasons for the unexpected move were explained by Intel Corp. spokeswoman Agnes Kwan, who said that Intel was allegedly asked to stop funding the Classmate program (which aims at producing inexpensive laptops for children in developing countries), as it would compete with the OLPC program.

“We have long believed that there is no single solution to the needs of children in emerging markets. We concluded that we cannot accommodate the request,” the Intel representative said at the time. The announcement came a few days before the highly publicized laptop was announced to be exposed at the Las Vegas CES technology fair.

Nicholas Negroponte, the founder of One Laptop Per Child program, has openly criticized Intel’s decision to pull out from program. “They've been doing damage in the marketplace with countries since the day we started. And after we made peace with them, they did more damage,” Negroponte said in an interview for the Wall Street Journal.

Now it seems like not all the bridges were burnt, because IDG News Service is reporting that Negroponte hasn't ruled out the possibility of resuming the collaboration.

“It was very unfortunate what happened with Intel and I hope there's a way of rebuilding it in the future because there's no interest in OLPC pushing Intel out. It just is not in our interest. Our goal is to get this to as many children as possible,” said Nicholas Negroponte, chairman of OLPC, in an interview.

In another piece of news, IDG News Service reported also that the OLPC foundation is working with Microsoft to develop a dual-boot system to put both Linux and Windows on laptops aimed at kids in developing countries.

“We are working with them very closely to make a dual-boot system so that, like on an Apple, you can boot either one up. The version that's up and running of Windows on the XO is very fast, it's very, very successful. We're working very hard to do both,” said Nicholas Negroponte, chairman of OLPC.

In December, James Utzschneider, general manager of Microsoft's Unlimited Potential Group, said the company would test the Windows-based XO laptops starting January 2008 in the U.S., India and possibly Romania.

Depending on the outcome of these trials, they could become available on the market as soon as the middle of 2008. Apart from the trial versions, Microsoft declared it does not intend to commercialize the product in North America.