X Boss Faces Lawsuit Over Unpaid Hardware Bills Following Twitter Acquisition

Elon Musk, the well-known entrepreneur and owner of the social media platform formerly known as Twitter, now rebranded as X, is embroiled in a new legal battle. Taiwanese infrastructure manufacturer Wiwynn has filed a lawsuit against Musk’s company, seeking $120 million in unpaid hardware bills.

Wiwynn, which specializes in custom hardware solutions, had a long-standing agreement with Twitter dating back to 2014. Under this agreement, Wiwynn provided tailored data center and computing solutions, submitting lists of required hardware parts for approval before making purchases. However, since Musk’s acquisition of Twitter in 2022, the company has allegedly stopped making payments for these services.

The lawsuit claims that Wiwynn has not received any payments since November 2022, despite continuing to fulfill its contractual obligations. The company managed to cancel $40 million worth of planned purchases and repurpose or resell an additional $19 million worth of components. However, Wiwynn is now seeking compensation for the remaining $61 million in unsold custom hardware.

This legal action adds to the mounting challenges Musk has faced since taking over Twitter. The lawsuit highlights the financial strain on X, with Wiwynn’s custom hardware setups being difficult to market elsewhere. The company is asking for a jury trial to determine the compensation owed by X.

In addition to this lawsuit, Musk has faced other legal issues, including accusations of halting payments to suppliers and landlords following the acquisition. The ongoing financial and legal troubles underscore the complexities and challenges Musk has encountered in his efforts to transform Twitter into X.

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