However, the Arm chip could lead to problems for XO-2 in trying to load a full version of Windows, Negroponte said. As with the XO-1, OLPC wants to offer a dual-boot option on XO-2 where users can choose to load either Linux or a full Windows OS. While Arm processors can run Windows Mobile operating systems, they can't run a full Windows OS.

"Like many, we are urging Microsoft to make Windows -- not Windows Mobile -- available on the Arm. This is a complex question for them," Negroponte said.

OLPC is in talks with Microsoft to develop a version of a full Windows OS for XO-2, Negroponte said. The XO-2 is still 18 months away from release, so "a lot can change with regard to Microsoft and Arm," Negroponte said.

Microsoft did not immediately respond to a request for comment.

Designed for use by children in developing countries, the XO laptop has been praised for its innovative hardware features and environmentally friendly design. In the same vein, XO-2 is also being engineered with hardware and software features that OLPC hopes will appeal to kids in primary schools.