xAI data centre contractors file liens for non-payment
Darana Hybrid claims they were stiffed for $137 million on the Colossus I and II data centres in Memphis, Tennessee, and $431 million on facilities in nearby Southhaven. It’s filed liens against two SpaceX subsidiaries, CTC Property and MZX Tech. [Memphis Business Journal] Darana Hybrid worked on…
Darana Hybrid claims they were stiffed for $137 million on the Colossus I and II data centres in Memphis, Tennessee, and $431 million on facilities in nearby Southhaven. It’s filed liens against two SpaceX subsidiaries, CTC Property and MZX Tech. [Memphis Business Journal] Darana Hybrid worked on Colossus since it was announced in 2024. Owner Daryl Cuttell said it was all fine until xAI merged into SpaceX: [Action News 5, video] It was running smoothly until April when the new regime stepped in and just ruined it all. After the liens hit the news, SpaceX fired back with a countersuit claiming all manner of malfeasance and demanding Cuttell pay them $500 million in compensation. [complaint, PDF; case docket] But multiple other companies are filing liens for non-payment on Colossus work — so far including TorcSill Foundations for $65,000 and USW-Menard for $2.2 million. Musk companies have a track record of just not paying people. Tesla and SpaceX have stiffed contractors for years, some to the point of bankruptcy. Tesla’s own lawyers admitted in court in one bankruptcy case: [CNN] “I don’t disagree that it does take Tesla some time to pay,” the attorney said in court last year, adding “that goes for legal bills, too … I know it full well.” Musk fired so many employees when he bought Twitter that they flooded the company with arbitration cases. Now there’s at least one lawyer who specialises in cases against Musk companies. [Vanity Fair] Video — PodcastSource: Pivot to AI — Published — Category: Business