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It looks cool, but the title is misleading. Seems you need a lot of other stuff in order to make the $5 work for you.
What chip do they use for that? I really doubt that they can cram a linux CPU good enough to make video and a wifi controller in such a small cost.
This source [1] says it's a Qualcomm Atheros AR9331 (ie, MIPS).

[1] http://hackerboards.com/5-dollar-linux-equipped-omega2-iot-m...

Thanks! Indeed this chip sells for little more than 1$ in big volumes but it does not have video output, something I thought was shown in the kickstarter video but they actually demonstrate an access to the board via a browser.
It's definitely an MT7688 on the Omega2, not an AR9331. I updated our post at HackerBoards this morning, and added a pair of detailed block diagrams of the MT7688, showing two modes of its operation.
The answer is in the comments on the kickstarter page: [1]

> @dean blackketter The Omega2 uses the MT7688 580MHz MIPS processor.

MediaTek is notoriously hostile to the open source community [2] [3]. The Omega (the previous board by onion.io) uses a Qualcomm Atheros AR9331 [4] which is very well supported by open source, so their decision to ditch that chip and go with MediaTek is questionable in the IoT space.

[1] https://www.kickstarter.com/projects/onion/omega2-5-iot-comp...

[2] http://www.extremetech.com/mobile/209221-next-cyanogen-phone...

[3] http://www.gizchina.com/2014/03/24/mediatek-dont-share-sourc...

[4] Technical Details of the Omega 1: https://wiki.onion.io/Documentation/Hardware/Omega-Hardware#...

Mediatek open many useful documents/software on its official website. try to visit below link.. I think it can change your Stereotype. https://labs.mediatek.com/site/global/developer_tools/mediat...
Yes, I've visited their website frequently.

No, I don't think their stereotype is changed when they push out some documents and software.

It's cultural. Gongkai vs. Open Source.

Very exciting, however you still need some additional stuff to make it work, other than the Omega2 itself, as others have said. Tho I don't think you'll be running anything modern on 64 MB of RAM... ? Maybe can be used as a Arduino replacement which runs Linux, but it's more looking like a module that you plug into something, than a computer that other things plug into.
This is more like a plugable system-on-chip than a computer. Can you even use it without one of the expansion dock ?
As long as you can power it with 3.3V you can run it without the docks.