Tech Major Infosys Signs AI Deal With Existing Client Worth $2 Billion

India’s second largest IT company Infosys said that it has signed a deal with its existing client to provide artificial intelligence and automation services, spanning over five years with a target spend of $2 billion, the company said in its exchange filing.

The IT major didn’t disclose the name of the client involved in the $2 billion deal. It further said that AI and automation-related development, modernization and maintenance services are included in the agreement.

"Infosys has entered into framework agreement with one of its existing strategic clients to provide AI and automation led development, modernization and maintenance services. The total client target spend over 5 years is estimated at $2 billion," the filing said.

This move comes after the rival company Tata Consultancy Services said it plans to train 25,000 engineers to get them certified on Microsoft Azure’s OpenAI. Wipro plans to invest $1 billion into artificial intelligence (AI) over the next three years.

This also comes a few days before the company is set to reveal its first quarter results for FY24 on Thursday. It has pegged its FY24 growth around 4-7%, its slowest revenue expansion in six years.

Last month, it had also signed a digital transformation deal with Nordic-based Danske Bank valued at $454 million for a period of five years. In this deal, it will acquire the lender’s IT centre in Bengaluru that employs 1,400 people. The deal, which can be extended for three more additional years, is to accelerate the Nordic-based bank’s digital transformation initiatives with scale.