Elon Musk stopped paying millions in server hardware bills after Twitter acquisition, new lawsuit claims
Elon Musk's X faces a $120M lawsuit from Wiwynn over unpaid server hardware bills since his 2022 Twitter acquisition.
Elon Musk's rebranded social network X is being sued by Taiwanese infrastructure manufacturer Wiwynn for $120 million in unpaid server hardware bills. Wiwynn claims that X violated a long-standing Master Purchase Agreement that had been in place with Twitter since September 2014.
Following Musk's acquisition of Twitter in 2022, Wiwynn states that payments abruptly stopped in November 2022. Despite attempts to recover costs by canceling some orders and repurposing components, Wiwynn is seeking compensation of at least $61 million in damages plus interest for unsold hardware.
This lawsuit adds to Musk's mounting legal challenges post-Twitter acquisition, including disputes with landlords and former executives. These ongoing issues portray X as increasingly financially unstable, while Musk is also suing advertisers reluctant to engage with the rebranded platform.