Infosys forfeits a $1.5 billion AI agreement with an international client.
“Infosys has revealed that an unnamed global corporation, which had initially entered into a $1.5 billion artificial intelligence solutions agreement, has chosen to cancel the Memorandum of Understanding (MoU) with the prominent IT services firm.
Initially intended to span 15 years, the agreement was formally established in September 2023. This development points to a heightened sense of uncertainty in the technology budget and IT service client demands. Remarkably, this decision unfolded in under two weeks following the sudden departure of the company’s former CFO, Nilanjan Roy. Infosys stated in an exchange filing, “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.”
The company further explained, “The global company has now elected to terminate the Memorandum of Understanding, and the parties will not be pursuing the Master Agreement.” Infosys had initially partnered with the aforementioned global entity to deliver digital experiences utilizing Infosys’ platform and AI solutions.”