BENGALURU: IT major Infosys has lost a $1.5 billion AI contract from an undisclosed global company.
In an exchange filing on Saturday, the company said, "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 global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement," it added.
This comes at a time when IT companies are struggling to win major deals from clients.
In September, Infosys announced that it entered into an MoU with a global company to provide enhanced digital experiences, along with modernisation and business operations services, leveraging Infosys platforms and AI solutions.
The total client target spend over 15 years was estimated at $1.5 billion.
On December 21, Infosys announced a five-year collaboration with LKQ Europe, a distributor of automotive aftermarket parts for cars, commercial vans and industrial vehicles in Europe. Infosys said it will lead LKQ Europe's IT related business transformation. In Q2 of this fiscal, Infosys saw its highest large deals value at $7.7 billion, spread across all verticals and geographies. Salil Parekh, CEO and MD, Infosys, had said that the growing adoption of its Generative AI offering, Topaz, is helping the company deliver consistent value and expand market share.
Earlier, Infosys bagged a $1.64 billion deal from Liberty Global, a converged video, broadband and communications company, and in July, the company signed a deal valued at $2 billion with one of its existing clients.
Analysts have said that the Indian IT sector might see muted demand in FY24. Goldman Sachs said that the sector will pick up from FY25 onwards.