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Linux is short for "Linus' Unix," with the short "i" sound preferred, after the Swedish pronunciation of "Linus."
Linux is a Unix-like operating system designed to give personal computers a free, or nearly free alternative to more complex Unix systems. It was developed by Linus Torvalds at the University of Helsinki in Finland. More specifically, Torvalds developed the kernel -- the central part of the Linux system -- the rest of the complete system involves components developed as part of the GNU Project.
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