One Laptop Per ChildIntel, who has reportedly been pushing hard to sell their ‘Classmate PC,’ vs the OLPC project’s AMD-based open-source system – has withdrawn from the OLPC project. According to online reports, Nicholas Negroponte, former Media Lab director at the Massachusetts Institute of Technology, finally had ‘enough’ of the constant sales pressure.

After documenting the sales pressure from Intel by an OLPC client – the fight really began. The client had already decided, after field testing, that they would utilize the OLPC for their primary schools and were looking to Intel to provide the Classmate for their secondary schools. Intel continued the pressure for them to purchase the Classmate for their primary schools.

There was a big keynote scheduled for CES with Mr. Negroponte ready to roll out the new Intel-based OLPC – but those plans have been scrapped and now, well, we’ll just have to see what happens next. “We at OLPC have been disappointed that Intel did not deliver on any of the promises they made when they joined OLPC; while we were hopeful for a positive, collaborative relationship, it never materialized,” Negroponte said in a statement distributed by the OLPC on Friday.

Intel decided to quit the nonprofit project and the OLPC board because the two reached a “philosophical impasse,” Intel spokesman Chuck Mulloy said. Meanwhile, Intel will continue with its own inexpensive laptop design called the Classmate, which it is marketing in some of the same emerging markets OLPC has targeted. (Source: CNN)

This is the second set-back for the OLPC project this week after a Nigerian firm demanded $20 million from OLPC for their supposed reverse engineering of the multi-language keyboard and has actually received a temporary restraining order against the OLPC being sold in Nigeria.

With notebook prices dropping quickly to under $500, there will be lots more commotion in the quest to cover the world in computers in the future. Watch for the updates from TigerTV at CES 2008 – and we hope to actually play with one of these buggers!