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Intel says it decided to quit the non-profit organisation after the two sides reached a "philosophical impasse" over requests from OLPC founder Nicholas Negroponte that the chip giant exclusively support the XO.

"OLPC requested we end support for all other platforms which is contradictory to what we believe. We believe in multiple solutions, different countries require different solutions," a spokesperson for the company told PC Pro.

Intel says it already has support agreements for the Classmate PC in several countries and cannot walk away from them.

Intel confirmed that its departure from OLPC's board means that the prototype Intel-based

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XO, which rumours suggest was to be unveiled at CES next week, will be canned.

"We at OLPC have been disappointed that Intel did not deliver on any of the promises they made when they joined OLPC," responds Nicholas Negroponte, founder of One Laptop per Child.

"Intel was unwilling to work cooperatively with OLPC on software development. Over the entire six months it was a member of the association, Intel contributed nothing of value to OLPC. The best Intel could offer in regards to an "Intel inside" XO laptop was one that would be more expensive and consume more power - exactly the opposite direction of OLPC's stated mandate and vision."

Intel and OLPC agreed in July to work together on the development of low-cost technology for developing nations. It was hoped the agreement would bring an end to the high-profile squabbling between the two companies, which saw Intel initially dismiss the XO as a "gadget".

PC Pro will be reporting direct from CES 2008 in Las Vegas all next week, bringing you interviews, breaking news and all the new technology you could hope for. You can find the latest coverage at our CES homepage.