According to Business Insider, Wiwynn, a server manufacturer under the Wistron umbrella, is chasing Musk over $61 million in unpaid hardware invoices.

Wiwynn is not the only one levelling such allegations against X; MiTAC, another Taiwanese server supplier, faced similar issues in the fourth quarter of 2022, as reported by United Daily News.

The trouble between Twitter and Wiwynn emerged following Elon Musk's acquisition of Twitter in 2022, during which he instituted extensive cost-cutting measures, including renegotiating supplier contracts, resulting in a suspension of payments for server components valued at approximately $120 million.

Wiwynn said  X failed to uphold a Master Purchase Agreement from 2014, which stipulated that it would submit its infrastructure requirements to Wiwynn, approve the proposed list of custom servers, and remunerate accordingly.

Post-acquisition, the company stopped paying for these products and severed communication with Wiwynn.

The Taiwanese company had amassed $120 million worth of server components to meet X's demands, anticipating Twitter would bear the costs. However, following the cessation of payments, Wiwynn cancelled about $40 million of undelivered parts and resold the remaining $19 million worth of equipment.

The lawsuit seeks compensation for the outstanding $61 million, representing the cost of custom-designed components for X that could not be sold elsewhere.

MiTAC also encountered payment disruptions after Musk's takeover in the fourth quarter of 2022. Due to delayed payments from Twitter, MiTAC recorded a significant $43.71 million write-down, contributing to notable financial losses.

MiTAC did not directly accuse X of non-payment. The company eventually mitigated losses by reselling or reclaiming the reserved components initially intended for Twitter, enabling it to report good results in Q2 2023.