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The Greeks.
To be frank, they had nothing to do with the Olympics, which were created by the Greeks.
No certain person founded the Olympics, but the Greeks were known to have started it.
The Greeks stopped fighting every four years for the Olympics because the Olympics honored the gods.
Originally the reason the Greeks founded the Olympics was to have a "family reunion". At the time, Ancient Greeks were scattered from Spain to North Africa, and from Ionia to Italy. This was a way to unite themselves every 4 years. Eventually it turned into a "which colony is the best" competition, and the model that we have today.