NIX Solutions: Wiwynn Sues X for Unpaid $61M Server Bill

Taiwanese tech company Wiwynn has filed a lawsuit against X (formerly Twitter) over an unpaid $61 million bill for server hardware ordered before Elon Musk’s acquisition. X has denied the allegations.

In the lawsuit, Wiwynn accuses X of breach of contract, breach of good faith and fair dealing, and failure to perform in good faith. According to Tom’s Hardware, two additional counts—intentional misrepresentation and misrepresentation—were later added to the lawsuit.

NIX Solutions

Dispute Over Server Contracts

Before Musk took over Twitter and rebranded it as X, the company had ordered custom-designed IT solutions from Wiwynn, including server racks. Since these components were not mass-produced, Wiwynn had to pre-order parts in advance to fulfill the agreement. The complaint specifies that “the components used to assemble the products are largely unique and require long lead times to order.” Twitter had committed in writing to both purchase the components and fulfill its payment obligations.

However, after Musk’s acquisition, the situation between X and Wiwynn worsened. According to Wiwynn, X stopped making payments for the ordered products and failed to respond to inquiries regarding overdue invoices. The company claims X owes more than $32 million for the products already delivered and additional costs for components Wiwynn had pre-purchased from suppliers. Although some components could be resold, Wiwynn insists X still owes at least $61 million in total, notes NIX Solutions.

X Denies Wrongdoing

X disputes the allegations, stating that it never gave final approval for the purchase of the equipment Wiwynn supplied. Representatives of X declined to provide further comments on the matter.

The case is currently under review in the District Court for the Northern District of California. As it develops, we’ll keep you updated on any further updates regarding the dispute.