Infosys loses major AI contract worth $1.5bn

Chris Helgren/Reuters

Indian technology company Infosys has announced the cancellation of an earlier announced ten-year contract worth $1.5 billion in artificial intelligence and digital transformation.

Here's What We Know

The agreement was announced on 14 September as a "memorandum of understanding with a global company". It was supposed to be a master contract and implement projects on Infosys platforms over a period of 15 years.

However, on December 23, it was learnt that the second party had decided to terminate the memorandum. The companies did not enter into a final agreement without giving reasons.

Despite the significant size of the contract, its loss will not have a significant impact on Infosys, which has annual revenues of more than $18 billion. Nevertheless, this news goes against the company's claims of its ability to strike major deals in AI and digitalisation.

Source: The Register