Hot on the heels of the release of the early look version of the Android Software Development Kit (SDK), Google has announced the Android Developer Challenge, which will provide $10 million (485,000) to developers who build mobile applications for Android, which Google describes as the first complete, open, and free mobile platform.
The Challenge is designed to support the developer community and spark innovation on the Android platform by awarding cash prizes ranging from $25,000 to $275,000 to developers whose applications are picked by a panel of judges.
Weve built some interesting applications for Android, but the best applications are not here yet, and thats because theyre going to be written by developers,” says Sergey Brin, Google Co-founder and President, Technology. Wed like to reward these developers and recognize them as much as possible.”
Android was announced on 5 November by the Open Handset Alliance (OHA), a group of more than 30 technology and mobile industry companies committed to fostering innovation on mobile phones and offering a better consumer experience. The Alliance will provide developers with a new level of openness that enables them to work more collaboratively. 
The $10 million total in the Android Developer Challenge will be distributed equally between the Android Developer Challenge I and II. Submissions for Challenge I will be accepted from January 2 through March 3, 2008. The 50 most promising entries will be announced before the end of March, with each receiving an award of $25,000 to fund further development. These 50 entries will then be eligible for even greater recognition by applying by May 1, 2008 for 10 awards worth $275,000 each, and another 10 worth $100,000 each. Recognition for the top apps among those entries will be announced by end of May 2008. Challenge II will launch after the first handsets built on the platform become available in the second half of 2008.
A panel of technology and mobile experts selected from the OHA member organisations and the industry will judge all qualifying entries. Awards will be given to the developers whose applications leverage all that the Android platform has to offer, in order to provide consumers with the most compelling experiences. Developers retain all intellectual property and other rights to their applications.
Interested developers should download the SDK here, build a great application, and then submit an application between January 2 and March 3, 2008.
Additional information about the Android Developer Challenge can be found here.