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Following an agreement between Intel and the OLPC project to collaborate on technology and content for the project’s so-called $100 laptop, the chipmaker has announced it plans to develop a new CPU architecture specifically designed for the ultra-low cost laptop category, in a bid to take over AMD's position at the heart of the OLPC XO laptop.

No current Intel microprocessors fit the small size, low cost, and low power consumption required by the OLPC laptop, which instead will run on AMD's 433MHz Geode LX-700 – at least in its first generation. According to InfoWorld, the new chips from Intel will be based on either the A100 or A110 Celeron M, or on the upcoming Silverthorne 45 nm chip and will be considered for future OLPC notebook systems.

The XO is expected to start shipping to children in developing countries before the end of the year. Meanwhile, Asus’ 7-inch low-cost Eee PC will reportedly be available at brick-and-mortar stores like Best Buy and online retailers like Newegg within the next few weeks.