Intel, Third World Laptop Initiative Join Forces

Intel and the One Laptop per Child initiative are making peace and embracing the notion of synergy. The chip maker and the pioneer of the $100 laptop concept will stop competing for deals with governments in the developing world and team up, the AP reports. The partnership is a big step on the road to the elusive $100 goal.

One Laptop has pared the bulk-purchase price of its hand-cranked XO model, which uses a processor produced by an Intel rival, to $175. Intel's Classmate goes for $200 but needs an electric supply. The companies can now offer package deals to meet both urban and rural needs—and Intel has an inside track on becoming One Laptop's chip supplier. (More computer stories.)