In 1991 Linus Torvalds began working on what is now known as the Linux kernel while attending University in Finland. At first alone, though soon with the help of many others, Linus continued developing the Linux kernel. Today, what is typically referred to as "Linux" refers to not only the kernel, but to the very extensive suite of GNU utilities that accompany the kernel in most Linux distributions as well. Together, Linux kernel and the GNU utilities form what is popularly known as "Linux". [JMH]
Hello!
I hope that this can help you.
History Of Linux
The Linux kernel has been marked by constant growth throughout its history. Since the initial release of its source code in 1991, it has grown from a small number of C files under a license prohibiting commercial distribution to its state in 2007 of about 290 megabytes of source under the GNU General Public License
In 1991, in Helsinki, Linus Torvalds began a project that later became the Linux kernel. It was initially a terminal emulator, which Torvalds used to access the large UNIX servers of the university. He wrote the program specifically for the hardware he was using and independent of an operating system because he wanted to use the functions of his new PC with an 80386 processor. Development was done on Minix using the GNU C compiler, which is still the main choice for compiling Linux today (although the code can be built with other compilers, such as the Intel C Compiler).
As Torvalds wrote in his book Just for Fun, he eventually realized that he had written an operating system kernel. On 25 August 1991, he announced this system in a Usenet posting to the newsgroup "comp.os.minix.":
Torvalds first published the Linux kernel-then exclusively known as Linux-under its own licence, which was, essentially, a shared source licence with a restriction on commercial activity. With code from the GNU system freely available, it seemed advantageous if this could be used with the Linux kernel. In 1992, he suggested to switch to the GNU General Public License. He first announced this change in the release notes of version 0.12. In the middle of December 1992 he published version 0.99 using the GNU GPL.
Linux and GNU developers worked to integrate GNU components with Linux to make a fully functional and free operating system.
Torvalds has stated, "making Linux GPL'd was definitely the best thing I ever did".
References: http://en.wikipedia.org