BBC News story

"The chip maker has been promoting its own cheap laptop, the Classmate, in many of the same places as the OLPC.

"OLPC had asked Intel to end our support for non-OLPC platforms, including the Classmate PC, and to focus on the OLPC platform exclusively," said Mr Mulloy . "At the end of the day, we decided we couldn't accommodate that request."

He added that the use of AMD chips in the first XO laptops had not influenced its decision."

UPDATE: OLPC Side Looks like there was more to it, which is unsuprising