X (formally known as Twitter) is facing another lawsuit, this time over unpaid server parts by Taiwanese tech company Wiwynn.
Just afterX was hit with a $600,000 fineover an unfair dismissal on August 13, theElon Musk-owned social media site has more money troubles brewing.
Wiwynn, a Taiwanese tech company, is suing the social media site for $61 million after it allegedly failed “to compensate Wiwynn for custom components.”
A Master Purchase Agreement (MPA), according to theContact Counsel website, is a legally binding contract between a buyer and a seller. This MPA between companies was in place for eight years “without issue.”
The claim also states that X failed to respond to multiple communications from Wiwynn, which were inquiries about the past-due payments for “delivered finished products.”
At that time, Wiwynnn had sourced, and paid for around $120 million worth of custom and non-custom IT components for X.
However, the claim explains that X “stopped providing” any additional info on how the company was meant to deliver the products to X.
Related:
According toBusiness Insider, Wiwynn has been able to recover around $59 million worth of components. However, the company is suing Musk’s X over damages for leftover $61 million.
A research analyst forDIGITIMESstates that, as of writing, Wiwynn is no longer in business with X, and that Dell and Supermicro currently provide the social media site with AI server procurement.
Rosalie Newcombe was a Senior Tech Writer on Dexerto’s UK team. Rosalie is an expert on all things handhelds, and has been picking them up since the original Game Boy, all the way up to the Steam Deck. They have covered hardware for PCGamesN and Custom PC.
