Intel's Classmate PC, the current biggest competitor of the XO laptop, has recently received a huge boost following a large order from Venezuela. The planned deal will see over one million Classmate PCs manufactured and sold to the Venezuelan Government, with the intention of delivering them to schools. The units are intended to help improve literacy rates for young children.

This is the second large deal announced in recent history, after Intel announced a smaller deal with Portugal to deliver half a million units to them.

If we take statements from the OLPC project at face value, they certainly aren't worried that large orders like this pose a threat to the XO. They claimed recently that it was their goal to get these machines into the hands of children across the world, and that even if their competitors succeed it's still a victory for everyone. At the same time, OLPC frowned upon companies who would try to commercialize projects like this, caring more for profits than for education.