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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 262.65

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10:39 AM EST

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To: Vattila who wrote (247255)	2/2/2008 9:04:12 AM
From: gvatty	Read Replies (2) of 275872

I am not privy to any inside information. My guess and speculation is that when Intel was on the board of the OLPC they thought they could pressure into a windows based operating system, Intel software, and more Intel component parts. I'm sure they wanted to use the OLPC to expand their market like you suggested. Negroponte was strong willed and wanted his imprint on the project, didn't want it to seem to be a marketing ploy for Intel or Microsoft, and wanted a practical product. For its components the XO is better with a Linux OS vs. a Windows based OS. This does not provide a natural transition to the Intel's other products. Intel,instead of spending money on green power could have subsidized the Classmate or a Classmate clone for the OLPC for maybe even the original $100 price. Why they didn't is probably because Negroponte didn't let Intel have their way 100% or 90%. Negroponte and Intel both wanted things their own way. Negroponte wins because he is the founder of the program and Intel looks bad because they were perceived as being greedy. It seemed clear from Intel's actions and withdrawl that their involvement in the OLPC was for marketing purposes vs. a charitable purpose. Microsoft was smart. They lost initially in the project, but hung with it and the OLPC is now proposing a dual boot XO. AMD had a potential product they were developing that was destroyed by the OLPC, the AMD PIC I think it was called. But they also stuck around and worked on the XO even though it wasn't as lucrative for them as their own project would have been. Another difference between AMD and Intel. Money and profitable products should be more of a priority for AMD than Intel, but it seems that AMD will sacrifice the potential of immediate profit for a charitable purpose. Hopefully, this will reap rewards for them in the future.

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