Amid an uncertain tech environment, Infosys has signed a $2 billion artificial intelligence (AI) deal with one of its existing clients.
India’s second-largest software services exporter said on Monday it has signed an agreement with an existing client to provide artificial intelligence (AI) and automation services that will span over five years, with a target spend estimated at $2 billion.
AI and automation-related development, modernisation and maintenance services are included in the agreement, the company said in an exchange filing.
As Microsoft-backed OpenAI’s generative chatbot ChatGPT took the world by storm in late 2022, companies around the world have doubled down on investing in AI.
Infosys’ move comes after rival Tata Consultancy Services said it planned to train 25,000 engineers to get them certified on Microsoft’s Azure Open AI.
Other rival Wipro has plans to invest $1 billion into artificial intelligence (AI) over the next three years.
Bangalore-based Infosys launched a platform called Infosys Topaz for generative artificial intelligence (AI) in late May.
The announcement led to its shares firming in an otherwise volatile market.
The Infosys scrip on Tuesday ended at Rs 1,475, a gain of Rs 52.25 or 3.67 per cent over the last close on the BSE. Infosys is set to announce its quarterly results on July 20.
It comes just days after rival Wipro announced a $1 billion spending plan to train its entire 2.5 lakh employees in AI and integrate the technology into its product offerings.
Wipro said it would bring 30,000 employees from cloud, data analytics, consulting and engineering teams together over the next three years to embed the technology into all internal operations and solutions offered to clients.
The announcements come at a time the sector continues to look at an uncertain future with some clients withholding discretionary spending.
Companies have declared lacklustre numbers in an otherwise seasonally strong April-June period. The management commentary is also indicating that green shoots is still some time away and that a revival in demand can be expected only in the second half of the fiscal.
Meanwhile, IT company Happiest Minds Technologies on Tuesday said it has raised capital to the tune of Rs 500 crore through qualified institutional placement (QIP) of equity shares.
The fund-raising committee of the board of directors approved the allotment of 54.11 lakh equity shares of face value Rs 2 to eligible investors at a price of Rs 924 per share (including a premium of Rs 922 per equity share), the company said in a release.
This was the first-ever equity raise after its successful IPO in 2020. It fetched a strong response from institutional inevstors. With inputs from Reuters