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India's Infosys Falls after $1.5 bln AI Deal Termination

BENGALURU, Dec 26 (Reuters) - Shares of Infosys fell as much as 2.6% on Tuesday after the company said that an unnamed global company, which had signed a $1.5 billion deal focused on artificial intelligence solutions, decided to terminate its Memorandum of Understanding (MoU) with the IT giant.

Infosys said it had plans to enhance digital experiences and provide business operation services, utilizing the company's platforms and artificial intelligence (AI) solutions.

It was a 15-year deal signed in September 2023. The deal termination comes at a time when IT and tech companies globally are facing uncertainties and challenges.

This comes just two weeks after Nilanjan Roy, the company's former CFO, resigned.

Shares of the IT giant had gained about 6.7% during the quarter and 1.8% YTD.

Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Sohini Goswami

Source: Reuters


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