Sugar Labs will take the laptop's innovative interface, known as Sugar, to the "next level of usability and utility", according to its founders.
It is intended that the free software will be made available on other PCs, such as the popular Asus Eee.
The launch comes after the announcement that the group behind the $100 laptop has joined forces with Microsoft.
The deal means that One Laptop per Child (OLPC) will now offer the low cost laptops with Windows XP, as well as an open source alternative.
It will also continue to offer the Sugar educational interface that the new foundation intends to continue to develop.
"We will continue to work with OLPC but we will also work with other manufacturers," explained Sugar Labs founder Walter Bender.
"Hopefully it will mean that these ideas will get out there faster and to a broader community."More>>