By Emmanuel Ogbodo
X Corp, the company formerly known as Twitter and owned by Elon Musk, is facing a $61 million lawsuit from Taiwanese IT infrastructure provider Wiwynn over unpaid technology costs. Wiwynn, which specialises in cloud infrastructure for large-scale data centres, claims that X Corp failed to pay for $120 million worth of components it had procured on behalf of the social media company.
The dispute centres around a “Master Purchase Agreement” between X Corp and Wiwynn, established in September 2014. Under this agreement, X Corp would forecast its infrastructure needs, and Wiwynn would procure the necessary components with X Corp’s approval. This arrangement reportedly worked smoothly for eight years, with X Corp consistently paying for the equipment.
However, after Musk acquired the social media platform in 2022, Wiwynn alleges that X Corp abruptly stopped making payments in November of that year, leaving $61 million still owed. Despite Wiwynn’s efforts to communicate and resolve the issue, X Corp has reportedly refused to accept responsibility for the unpaid components.
Wiwynn managed to cancel $40 million worth of undelivered components and recoup another $19 million through reselling, but the company is still facing significant financial loss due to the custom nature of the remaining equipment and the costs associated with storing them.
As a result, Wiwynn has filed a breach of contract lawsuit in the California Northern District Court, seeking a jury trial and damages of at least $61 million, plus interest.
This lawsuit is just one of several legal challenges X Corp is currently facing. The company is also involved in disputes over unpaid stock options and compensation for unfair dismissal of a former senior executive in Ireland.
X Corp has not yet provided a detailed response to the lawsuit, only stating, “Busy now, please check back later.”
