India’s Infosys signs five-year AI deal with $2 bln target spend

India’s second-largest software services exporter Infosys (INFY.NS) said on Monday it has signed a deal 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, modernization and maintenance services are included in the agreement, the company said in an exchange filing.

The company did not disclose the client’s name.

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 (TCS.NS) said it planned to train 25,000 engineers to get them certified on Microsoft’s (MSFT.O) Azure Open AI. Other rival Wipro (WIPR.NS) has plans to invest $1 billion into artificial intelligence (AI) over the next three years.

Bengaluru-based Infosys launched a platform called Infosys Topaz for generative artificial intelligence (AI) in late May.

The company is expected to report its first quarter results on July 20.