Infosys loses $1.5 billion AI contract from global customer
Infosys has revealed that an unnamed global company has chosen to terminate a Memorandum of Understanding (MoU) for a $1.5 billion deal centered on artificial intelligence solutions. The 15-year agreement, signed in September 2023, aimed to deliver digital experiences using Infosys's platform and AI technologies. The termination indicates growing uncertainty in the demand and technology budgets of IT services clients. Notably, this development follows the unexpected resignation of Infosys's former CFO, Nilanjan Roy, less than two weeks ago.
Global firm will not proceed with 'Master Agreement'
In a recent exchange filing, Infosys stated, "This is in continuation to the disclosure made by Infosys vide letter dated September 14, 2023, titled 'Company update' with respect to an MoU with a global company which was subject to parties entering into a Master Agreement." The IT giant explained that the global firm has now decided to terminate the MoU and will not proceed further. To date, Infosys hasn't disclosed the firm's name or specified whether it's an existing client.
It was the fifth mega-deal for Infosys this financial year
The now-terminated deal marked Infosys's fifth significant deal in the current financial year. In May, the company secured a contract worth $1.5 billion with British oil and gas company BP. This was followed by a second pact worth $454 million with Danske Bank in June. In July, Infosys announced a $2 billion deal with an existing strategic client. In August, Infosys and Liberty Global, a London-based telecom, signed a $1.64 billion deal for five years.
