Infosys Loses $1.5 Billion AI Contract Signed Just Months Ago

Infosys Ltd. has lost a $1.5-billion AI contract signed just months ago, in yet another sign of business uncertainty afflicting the $250-billion outsourcing industry.

“This is in continuation to the disclosure made by Infosys vide letter dated Sept. 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 global company has now elected to terminate the MoU and the parties will not be pursuing the Master Agreement,” according to an exchange filing on Saturday.

On Sept. 14, India’s second largest IT services firm announced that it has signed a memorandum of understanding with a global company “to provide enhanced digital experiences, along with modernisation and business operations services, leveraging Infosys platforms & AI solutions”.

The deal, subject to signing of a master agreement, was valued at $1.5 billion and spread over 15 years.

On Friday, Infosys’ shares rose 1.68% to Rs 1,562.00 apiece on the BSE even as the benchmark Sensex ended the day 0.34% higher at 71,106.96.