The Raspberry Pi is a credit-card sized computer developed in the UK to promote computer science education. It runs Linux and costs $25-$35. It has an ARM processor, HDMI and USB ports, and can be used for tasks like web serving, gaming emulation, and HTPC. While low cost, it has limitations like fixed RAM and lack of x86 compatibility. Potential future uses include networking clusters, holographic projection, and small business servers.