This is interesting (article below).  Google is developing "Chrome OS" and 
Intel is developing "Moblin".  Moblin is said to be "Linux-based".  The 
article does not say that Chrome OS is Linux-based but it does say that 
Chrome OS is "open source."

Strangely, I just happened to be reading this article earlier today:

http://www.pbs.org/cringely/pulpit/2005/pulpit_20051117_000873.html

But that is 3.5 years old and maybe Google is much stronger in OS 
development today having done Android and a company internal Linux distro 
(says the new article).

Mike


Breaking News Alert
The New York Times
Wednesday, July 8, 2009 -- 12:39 AM ET
-----

Google Plans to Introduce a PC Operating System

In a direct challenge to Microsoft, Google is expected to announce on 
Wednesday that it is developing an operating system for a personal 
computer based on its Chrome browser, according to two people briefed on 
Google's plans.

The move would sharpen the already intense competition between Google and 
Microsoft, whose Windows operating system controls the basic functions of 
the vast majority of personal computers.

Read More:
http://www.nytimes.com/2009/07/08/technology/companies/08operate.html?_r=1&hp