Hyperscale 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 firm has added two more counts to the lawsuit it first filed in August 2024: intentional misrepresentation and negligent misrepresentation, arguing that X told Wiwynn it would assume liability for acquiring components.
In its original filing, Wiwynn claimed Twitter "abruptly stopped" paying it and ignored requests for payment for completed products. Wiwynn also said that it had stockpiled $120 million worth of parts for existing orders that were not delivered and is consequently seeking damages worth $61 million, having been able to cancel or recoup about $59 million worth of the components.
Wiwynn is not the only vendor X allegedly stopped paying in an effort to reduce its expenses. After the company left its Sacramento data center and downsized its Atlanta, Georgia facility in late 2023, the company refused to pay its Google Cloud and Oracle bills (before ultimately caving), and stopped paying AWS – until Amazon stopped paying for Twitter ads.
X has sought to have the Wiwynn lawsuit dismissed but, for now, the case continues in the US District Court for the Northern District of California.