MEMPHIS, Tennessee: A SpaceXAI contractor dispute has escalated after Darana Hybrid filed a $569.35 million claim for data-centre work, and company-related entities responded with a federal lawsuit.
The Ohio-based contractor recorded two liens totalling $136,892,782.78 against properties housing the Colossus I and Colossus II computing facilities in Memphis on July 30 and 31.
Darana subsequently filed claims for another $432,455,430.98 in DeSoto County, Mississippi, on August 5. The filings concern work at several computing and power facilities, ABC24 reported.
The Tennessee lien names CTC Property LLC and MZX Tech LLC as the property owners rather than SpaceXAI itself. A mechanic’s lien records a payment claim against property but does not establish that the amount is owed.
xAI LLC and related entities filed a lawsuit against Darana Hybrid, company owner Darryl Cuttell and Cuttell Motorsports LLC in the United States District Court for the Western District of Tennessee on August 4.
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The complaint alleges fraud, breach of contract and overbilling by hundreds of millions of dollars. The plaintiffs seek at least $500 million in compensatory damages, along with punitive damages and legal costs, according to the federal case docket.
SpaceXAI-related entities also accused Darana of withholding money intended for subcontractors and using project funds for unrelated ventures. Cuttell denied the allegations and said the agreed labour rates supported his company’s invoices.
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USW Menard Inc. and TorcSill Foundations have filed separate claims totalling more than $2.2 million for work connected to the Memphis facilities. No court has ruled that any of the disputed amounts are payable.
