Intel Capital is expected to provide a major part of a $30 million investment in education tablet start-up Kno, along with Advance Publications, a report has claimed.
According to All Thing Digital's Kara Swisher, sources with knowledge of the situation have revealed that Intel also plans to take over the hardware design of the tablet, targeted at college goers, while Kno will focus on coming up with great software for the device.
Even though Intel is in charge of the device's hardware design, it won't be manufacturing it. Instead, the company is expected to share the design of the hardware with original equipment manufacturers.
Swisher added that Intel Capital will be spending $20 million on the start-up while Advance Publications and others will come up with the rest of the money. Kno, started in 2009, has raised $65 million in equity and debt financing since its conception.
Despite the investor buzz surrounding the company, it has only been able to sell several hundred devices. The company even failed to fill its pre-orders for the device, indicating a lower-than-expected sales figure.
Back in February, All Things Digital had reported that the company was planning to sell off its hardware business and focus on developing education software for Apple's iPad and Google's Android operating system.