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It is shipped with a slimmed-down version of Fedora Linux and a GUI named Sugar that is intended to help young children collaborate.
The XO-1 includes a video camera, a microphone, long-range Wi-Fi, and a hybrid stylus/touch pad.
This innovation results in a much brighter display for a given amount of backlight illumination: while the color filters in a regular display typically absorb 85% of the light that hits them, this display absorbs little of that light.
Most LCD screens at the time used cold cathode fluorescent lamp backlights which were fragile, difficult or impossible to repair, required a high voltage power supply, were relatively power-hungry, and accounted for 50% of the screens' cost (sometimes 60%).
The latest version of the OLPC XO is the XO-4 Touch.
In 2008 the XO was awarded London's Design Museum "Design of the Year", plus two gold, one silver, and one bronze award at the Industrial Design Society of America's International Design Excellence Awards (IDEAs).According to Computer Aid International, in a test conducted in April 2009, the device was ranked as the most power saving among other information and communication technologies in education solutions.The XO-1 is designed to be low-cost, small, durable, and efficient.Instead of using subtractive color filters, the display uses a plastic diffraction grating and lenses on the rear of the LCD to illuminate each pixel.This grating pattern is stamped using the same technology used to make DVDs.