Infosys Faces Setback as it Loses USD 1.5 Billion AI Contract from Global Client
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Infosys, a major player in the IT industry, has encountered a setback with the loss of a $1.5 billion AI contract from a global customer. This development follows closely on the heels of the sudden resignation of Infosys’ former CFO, Nilanjan Roy, less than two weeks ago. These events contribute to a period of challenges and changes within the company, prompting attention from industry observers and stakeholders.
Infosys on December 23 announced that the undisclosed global company, which had previously signed a $1.5 billion deal focused on artificial intelligence solutions, has now decided to terminate the Memorandum of Understanding (MoU) with the IT services giant.
This was intended to be a 15-year deal, inked in September 2023, signaling increasing uncertainty in the demand and technology
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“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 said 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
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Agreement,” the company added. No further reason was given for the termination and neither was the name of the global company disclosed.”
Infosys had partnered with the said global company to provide digital experiences using Infosys’ platform and AI solutions.
