In a significant setback for Infosys, a leading player in the IT industry, the company has lost a $1.5 billion artificial intelligence (AI) contract from an undisclosed global client. This development comes closely on the heels of the unexpected resignation of Infosys’ former Chief Financial Officer (CFO), Nilanjan Roy, less than two weeks ago. These consecutive events mark a challenging period for Infosys, drawing attention from industry observers and stakeholders.
On December 23, Infosys announced that the global company, which had previously entered into a $1.5 billion deal focused on AI solutions, has decided to terminate the Memorandum of Understanding (MoU) with the IT services giant.
The 15-year deal, signed in September 2023, aimed to enhance artificial intelligence capabilities, but the client opted to terminate the agreement, adding a layer of uncertainty to the demand and technology landscape.
“This is in continuation to the disclosure made by Infosys vide letter dated September 14, 2023, titled ‘Company update’ with respect to a Memorandum of Understanding with a global company which was subject to parties entering into a Master Agreement,” Infosys stated in an exchange filing.
“The global company has now elected to terminate the Memorandum of Understanding, and the parties will not be pursuing the Master Agreement,” the company added. No specific reason was provided for the termination, and the name of the global company remains undisclosed.
Infosys had collaborated with the unnamed global client to deliver digital experiences through Infosys’ platform and AI solutions.
