From the Embrace & Extend? dept.:
Citing disagreements with the organization, Intel Corp. said Thursday it has abandoned the One Laptop Per Child program, dealing a big blow to the ambitious project seeking to bring millions of low-cost laptops to children in developing countries.

The fallout ends a long-simmering spat that began even before the Santa Clara-based chipmaker joined the OLPC board in July, agreeing to contribute money and technical expertise. It also comes only a few days before the Consumer Electronics Show in Las Vegas, where a prototype of an OLPC-designed laptop using an Intel chip was slated to debut.

Wired