Google recently expanded on last week's announcement of the Open Handset Alliance by releasing an SDK - and by announcing $10 million in prizes for developers who build "great applications" for the Android open platform for mobile devices.

The Android Developer Challenge will be run in two phases. First, the 50 most promising entries received by March 3, 2008 will get a $25,000 award to fund further development - and then, from those 50 entries, ten will win an additional $275,000, and ten will win $100,000.

"Putting up prizes to drive mobile development is nothing new, and while the Android Developer Challenge might offer more money, it comes without the promise of marketing and licensing assistance that normally accompanies such promotions (though the value of that varies widely)," notes The Register's Bill Ray.

More here about Machinist ... more here from TeleClick ... more here from the AP ... more here from Australian IT ... and the press release is here.