Infosys shares declined by nearly 3 per cent on Tuesday after the company revealed that an unnamed global partner, engaged in a $1.5 billion deal focused on AI solutions, decided to terminate its Memorandum of Understanding (MoU) with the IT giant.
On the last trading session, ahead of the , Infosys shares climbed 1.75 per cent to reach ₹1,561. As of 1:10pm on Tuesday, the stock was trading at ₹1,543, registering 1.28 per cent fall. In the early trades, it fell to as much ₹1,523 per share.
Infosys had plans to elevate digital experiences and deliver business operation services through the company’s platforms and AI solutions.
Also read- Infosys loses ₹12,500 crore mega-deal with AI company after CFO Nilanjan Roy’s resignation
What happened to Infosys’ mega AI deal?
On September 14, this year Infosys announced a partnership with a global company to deliver improved digital experiences, modernisation, and business operations services, utilising Infosys platforms and AI solutions.
In a Saturday BSE filing however, Infosys announced that the global company has opted to terminate the MoU and both parties will not proceed with the mega agreement.
“The global company has now elected to terminate the Memorandum of Understanding and the parties will not be pursuing the Master Agreement,” the IT giant said in the regulatory filing.
Deal loss adds to growing concerns
The deal loss comes amid global uncertainties and challenges for IT and tech companies. The UK economy has fallen in the third quarter, thus experts pointing that Britain could already be at risk of a recession.
Notably, this development occurred merely two weeks after Nilanjan Roy, the former chief financial officer of the company, resigned.
Despite the setback, the IT giant’s shares had seen a quarter gain of approximately 6.7 per cent and a year-to-date increase of 1.8 per cent.