Intel has dropped out of the One Laptop Per Child project after the project's board demanded the chip maker commit exclusively to building a single type of machine.
One Laptop Per Child (OLPC) is a non profit project that aims to sell $100 (£50) systems in the developing world.
But Nicholas Negroponte – the Massachusetts Institute of Technology professor in charge of the programme - asked Intel to stop supporting other technologies, such as its Classmate PC, that were aimed at providing cheap hardware.
The fall out is the culmination of months of wrangling.
Last year OLPC accused Intel of promoting its Classmate PC over the OLPC machines.
Intel introduced its system last year and is working on further projects .
On Wednesday Chief Technology Officer Mary Lou Jepson pulled out of the OLPC programme.
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