Just as J.P. Morgan took its rating on Intel (NASDAQ: INTC) to "neutral" on the back of lowered orders and guidance from Europe, the world's largest microchip maker said it was cutting its ties with the One Laptop Per Child (OLPC) project founded bu MIT's Nicholas Negroponte. The reason given? Disagreements with the project and its founder. Translation: some kind of financial disagreement.

The OLPC project, which is distributing cheaper laptop computers powered by hand cranks and running free operating system software, have already been given to poor children in Africa, Latin America and other countries. The problem is that Intel is has been marketing a low-cost laptop in the same countries where the OLPC unit was already being distributed. The OLPC laptops contain a microprocessor from Intel's chief rival, Advanced Micro Devices (NYSE: AMD).

Ending a year of public sniping about each other, Intel's plan to introduce a low-cost, OLPC-designed laptop with an Intel chip inside at next week's massive Consumer Electronics Show (CES) probably spurred the chipmaker into just calling the whole thing off with Negroponte.

The entrepreneurial MIT alum wanted Intel to not compete with the OLPC laptop in the countries where it was destined to become a hit, as Intel's planned "Classmate" laptop would have been a direct competitor. Intel spokesperson Chuck Mulloy responded with "We can't accommodate that request." So far, Negroponte's OLPC laptop sells for $188 overseas, much more than the $100 target price with which the unit was originally envisioned.

In a move I thought I'd never see, Microsoft (NASDAQ: MSFT) looks to be reversing course a little and trying to get a version of its Windows Vista computer operating system as an option on the $100 "One Laptop Per Child" project spearheaded by MIT to place computers into the hands of as many kids in distressed and poor nations as possible.

The project itself is highly admirable, as its goal is to connect kids to a world that expands their horizons and hopefully leads some countries from destitute status to growing, civil communities that are empowered by the knowledge that lives on the internet every day, as well as connecting citizens to one another and students with much-needed tools.

In the past, Microsoft has shunned the project, probably since it was slated to use a generic Linux operating system that provides no revenue to anyone -- not exactly a business Microsoft wants to be in. However, it also takes future customers away from Microsoft's revenue prospects in developing countries where PCs may pave the way for computer industry growth in the future. Talk about a dilemma.

In the midst of all the earnings reports today, it was easy to miss a press release from Microsoft Corp. (NASDAQ: MSFT) that unveiled the Microsoft Student Innovation Suite to be sold for $3 in some part of the world where governments have qualified.

The Microsoft Student Innovation Suite could be installed on Windows-based PCs (provided by the governments) and includes Windows XP Starter Edition, Microsoft Office Home and Student 2007, Microsoft Math 3.0, Learning Essentials 2.0 for Microsoft Office, and Windows Live(TM) Mail desktop.

Microsoft says its goal is "to help close the digital divide." This product, the company says, "will help bring social and economic opportunity to the estimated 5 billion people who are not yet realizing the benefits of technology." By 2015, Microsoft wants to reach one billion people with computing technology, people who currently don't have access to it.

Microsoft isn't the only one that is trying to bring technology to developing countries. Brandon Barker recently reported about the One Laptop Per Child project Google (NASDAQ: GOOG) and eBay (NASDAQ: EBAY) help fund. Five million laptops will be sold for $100. Intel (NASDAQ: INTC) and AMD (NYSE: AMD) both have products aimed to bridge the technological divide as well.

Indeed, these initiatives are commendable. This is a good example when business and social goals align. As Orlando Ayala, a Microsoft executive said, "This is not a philanthropic effort, this is a business." Bringing software to underserved countries can also help in lowering pirated versions, not to mention increasing future customer base.

With a little help from Google Inc. (NASDAQ:GOOG) and eBay Inc. (NASDAQ:EBAY), the One Laptop Per Child project plans to release the low-cost, simple and durable machine next year. Customers will, essentially, buy two laptops at once, with the extra going to a child in a developing country. Through the efforts of a yet-to-be-formed philanthropic organization, the customer will be able to stay in contact via e-mail with the child who receives the sponsored computer.

This summer, 5 million of the laptops (called XO) will be delivered to Brazil, Argentina, Uruguay, Nigeria, Libya, Pakistan and Thailand, and will include wireless networking and video conferencing to enable groups of schoolchildren to work together on one machine.

Michalis Bletsas, chief connectivity officer for OLPC, says Google will help publish the children's work online while eBay could sell the product to help minimize supply chain costs.

B. Brandon Barker is the author of Operation EMU