Intel has pulled out of the One Laptop Per Child project claiming that OLPC chairman Nicholas Negroponte had made demands which it could not meet.

An Intel spokesperson told vnunet.com that Negroponte had asked the chipmaker to commit exclusively to OLPC's XO machine and abandon its other plans.

Rather than commit exclusively to the AMD-powered XO laptop, Intel chose to withdraw from the programme and pursue other projects such as its Classmate PC.

"The important thing is not focusing on the platform," said the spokesperson. "We believe there is no single solution."

The spokesperson also claimed that Intel would have been required to abandon the support services it offers to initiatives run by its partners and distributors.

Intel's Classmate PC has long been a point of contention between Intel and OLPC. The latter had accused Intel of using 'shameless' tactics to promote the Classmate machines, while Intel had dismissed the XO as a '$100 gadget'.

The two sides appeared to make amends in July when Intel agreed to join the OLPC project. But the chip giant had always maintained that it would continue its other projects.

The first XO machines became available to the public in September as part of a two-for-one campaign. The promotion was so successful that OLPC extended the programme to the end of 2007.

Intel's pullout is the second loss suffered by the OLPC project this week, following the departure on Wednesday of chief technology officer Mary Lou Jepson.