X sued for $61 million over unpaid bills

Twitter, now known as X, is currently being sued by Taiwanese tech company Wiwynn for unpaid server parts.

Shortly after receiving a $600,000 penalty on August 13 for an unjust termination, X, the social media platform owned by Elon Musk, is facing additional financial difficulties.

Wiwynn, a technology company based in Taiwan, has filed a $61 million lawsuit against a social media platform for allegedly failing to provide compensation for custom components.

The cloud-enabling service company brought a lawsuit against the social media giant on August 16, 2024, in the U.S. District Court for the Northern District of California, alleging a violation of the 2014 purchasing agreement.

The complaint, as reported by The Register, alleges that on September 24, 2014, X (formerly known as Twitter) entered into a “Master Purchase Agreement”after realizing the potential value of Wiwynn’s cloud IT services for their website.

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The complaint, sourced from The Register, reports that on September 24, 2014, X (previously known as Twitter) signed a “Master Purchase Agreement”after acknowledging the potential benefits of Wiwynn’s cloud IT services for the platform.

According to the ContractsCounsel website, a Master Purchase Agreement (MPA) is a legally binding contract between a buyer and a seller. This MPA was in effect between two companies for a period of eight years without any problems.

Nevertheless, according to the claim made in November 2022, X has allegedly ceased making payments to Wiwynn for both delivered products and any future payments.

The assertion further alleges that X did not reply to several messages from Wiwynn regarding the outstanding payments for “delivered finished products.”

During that period, Wiwynnn had procured and covered the cost of approximately $120 million worth of custom and non-custom IT components for X.

Nonetheless, the statement clarifies that X ceased providing any further details on the company’s intended method of delivering the products to X.

According to a report by Business Insider, Wiwynn has managed to retrieve approximately $59 million worth of components. Nevertheless, the company is taking legal action against Musk’s X for the remaining $61 million in damages.

According to the research analyst at DIGITIMES, Wiwynn is currently not in partnership with X. Instead, the social media site relies on Dell and Supermicro for its AI server procurement.