Shares fall by around 3% as a result of Infosys' massive AI deal loss.

  • Dec. 26, 2023, 2:52 p.m.

Tuesday saw a nearly 3% drop in Infosys shares following the company's announcement that an unidentified worldwide partner in a $1.5 billion agreement centered on AI solutions had chosen to end its Memorandum of Understanding (MoU) with the IT behemoth.

Ahead of the most recent trading session, Infosys shares increased 1.75 percent to ₹1,561. Tuesday at 1:10 p.m., the stock was down 1.28 percent, trading at ₹1,543. It dropped to as high as ₹1,523 per share in the early sessions.

With its platforms and artificial intelligence (AI) solutions, Infosys aims to improve digital experiences and provide business operation services.

What became of the massive AI agreement with Infosys?
Infosys stated on September 14th, 2018 that it has partnered with a multinational corporation to provide enhanced digital experiences, modernization, and business operations services through the use of Infosys platforms and artificial intelligence technologies.

However, Infosys stated in a BSE statement on Saturday that the multinational corporation has chosen to end the Memorandum of Understanding and that neither party will pursue the massive arrangement.

The IT behemoth stated in the regulatory filing, "The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement."

Loss of deal adds to mounting worries
The deal loss occurs amid obstacles and uncertainties for IT and tech enterprises globally. Experts point out that the UK economy shrank in the third quarter, suggesting that a recession may already be imminent for the country.

It is noteworthy that this happened just two weeks after the company's former CFO, Nilanjan Roy, quit.

Despite the loss, the IT giant's stock had increased 1.8% year to date and gained almost 6.7% during the quarter.


Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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