Large-scale server maker Wiwynn has expanded its lawsuit against Elon Musk’s social network X, formerly known as Twitter, for allegedly failing to pay for server parts after Musk acquired the platform.
As first reported by The Register, the Taiwanese tech company has added two more counts to the lawsuit it first filed in August 2024: intentional misrepresentation and negligent misrepresentation, alleging that X told Wiwynn it would take responsibility for acquiring components. In her original lawsuit, Wiwynn claimed that Twitter “suddenly stopped paying her” and ignored requests to pay for finished products. Wiwynn also said it had stockpiled $120 million worth of components from existing orders that were not delivered and is seeking $61 million in damages, having been able to cancel or recover approximately $59 million in components. Wiwynn isn’t the only vendor X has reportedly stopped paying in an effort to cut costs. After the company abandoned its Sacramento data center and scaled back its Atlanta, Georgia, facility in late 2023, the company refused to pay its Google Cloud and Oracle bills (before finally giving up) and stopped paying AWS, until Amazon stopped paying for Twitter ads. X has asked that the lawsuit against Wiwynn be dismissed, but for now the case remains in the U.S. District Court for the Northern District of California.
