Wiwynn, a Taiwanese hyperscale server manufacturer, is suing Elon Musk’s X (formerly Twitter) for unpaid bills totaling $120 million related to server components. Here are the key points:

– The lawsuit claims X abruptly stopped payments for delivered products and ignored Wiwynn’s requests.
– Wiwynn had stockpiled $120 million worth of server parts for orders that were never fulfilled.
– Twitter initiated drastic cost-cutting measures, including closing data centers and reducing cloud expenses, to address its financial situation post-acquisition.
– Significant actions included vacating the Sacramento data center, which reportedly saved $100 million annually, and downsizing operations in Atlanta.
– Wiwynn seeks to recover $61 million, having canceled or recouped approximately $59 million of the components.
– The company is not alone in lawsuits against Musk’s enterprise, which is also facing a $128 million severance lawsuit from former CEO Parag Agrawal and a $20 million suit from chairman Omid Kordestani.