Hyperscale server maker Wiwynn is suing Elon Musk's X, formerly known as Twitter.
The Taiwanese tech firm said that the social media company refused to pay for around $120 million in server parts after Musk's acquisition, and is seeking $61m.
The company claims that Twitter "abruptly stopped" paying Wiwynn and ignored requests for payment for completed products. Wiwynn also said that it had stockpiled $120 million worth of parts for existing orders that were not delivered.
Instead, Twitter began slashing its cloud bills and closing data centers to pay down the debt caused by the acquisition.
Twitter left its Sacramento data center just before Christmas, and downsized its data center in Atlanta, Georgia. At the same time, it refused to pay its Google Cloud and Oracle bill (before ultimately caving), and stopped paying AWS - until Amazon stopped paying for Twitter ads.
Leaving Sacramento saved Twitter $100m a year, the company claimed. Wiwynn, meanwhile, was able to cancel or recoup about $59m worth of the components and is seeking damages equal to the remaining $61m.
Musk's business faces multiple lawsuits, including a $128m suit from former CEO Parag Agrawal over unpaid severance, and a $20m lawsuit from Twitter chairman Omid Kordestani.
Last month, however, he won dismissal of a lawsuit claiming he refused to pay at least $500 million of severance to thousands of Twitter employees he fired in mass layoffs.
