Google Inc. has developed the first touchscreen laptops powered by its Chrome operating system to be sold later this year, according to people familiar with the matter, as the Internet giant tries to go toe-to-toe with Microsoft Corp.'s Windows operating system.

Interestingly, the new Chrome devices also would compete with devices powered by Google's other operating system, called Android, which took the smartphone and tablet market by storm in recent years, propelling Google as a force in mobile-device software.

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