X (formerly Twitter), an Elon Musk company, is embroiled in a legal dispute with Wiwynn, a server maker that belongs to Wistron, over $61 million in unpaid hardware bills, reports Business Insider. Wiwynn is not the only company that makes such accusations against X; MiTAC, another Taiwanese server supplier, was similarly impacted in the fourth quarter of 2022, reports United Daily News.
The conflict between Twitter and Wiwynn arose after Elon Musk took control of Twitter in 2022 and implemented significant cost-saving measures, including renegotiating supplier contracts, which led to a halt in payments for server parts worth around $120 million, reports The Register. Wiwynn claims that X failed to honor a Master Purchase Agreement in 2014 under which it would submit its infrastructure requirements to Wiwynn, approve its proposed list of custom servers, and pay for it. After Musk's acquisition of the social media platform, the company allegedly stopped paying for these products and cut off communication with Wiwynn. This abrupt cessation of payments has now led to the lawsuit.
