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 X is sued by Wiwynn for $120M of unpaid server hardware bills post-2022 Twitter acquisition. Wiwynn provided custom hardware under a pact signed in 2014. Payments ceased after Musk's takeover, prompting Wiwynn to seek $61M in damages plus interest.

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.