One laptop per child for $100
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There are many contenders in this challenge the most noticeable being a group of academic and industry members building the One-Laptop-Per-Child (OLPC) Laptop. Members of this group include Nicholas Negroponte (MIT Media Lab), numerous other MIT faculty, Google, Nortel Networks, RedHat, AMD, and several other companies.
There is a lot of discussion over the merit of these low cost laptops and Phil Hartup at bit-tech has written a good review of the three major contenders and the machines they are proposing.
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