Elon Musk’s company, SpaceXAI, is facing allegations of unpaid bills from contractors working on its datacentres, specifically the Colossus datacentre near Memphis. A report published by the Memphis Business Journal states that an Ohio-based contractor, Darana Hybrid, has filed two liens against SpaceXAI demanding payment of around $136 million for work done since 2024.

The contractor alleges that they haven’t been paid for years, according to the reporter. This is not the first time Musk’s company has been in the headlines for the wrong reasons, particularly with regards to its datacentres.

Environmental Concerns

The rapid pace of construction of the two Colossus datacentres in Greater Memphis has already raised concerns, including the acquisition of heavily polluting gas turbines to power the facility. Residents have filed complaints about the air quality in the locality, and the NAACP, represented by Earthjustice and the Southern Environmental Law Centre, sued xAI and its subsidiary MZX Tech over alleged violation of the federal Clean Air Act in April.

SpaceXAI would remove 69 gas-powered turbines from datacentre facilities’ power plants in Southhaven. The company stated that they have entered into an agreed order with the Mississippi Department of Environmental Quality establishing a fixed removal timeline for all 69 of the temporary, mobile turbines.

Unpaid Bills

Darana Hybrid reportedly filed two liens, one demanding $18 million for constructing the first Colossus facility near Boxtown and another for $118 million for a second facility at Whitehaven. The total outstanding amount is alleged to be over $500 million. Two other companies, USW-Menard Inc and TorcSill Foundations, have also filed liens totalling more than $2.2 million for work done at SpaceXAI’s datacentre facilities.

Elon Musk’s history of unpaid bills is not new, as a 2025 probe claimed that contractors working for Tesla had filed liens for $110 million worth of dues over five years. These headlines have raised concerns about the social contract defined by capitalism and the impact of the AI boom on labour’s share of income.

According to a report shared by the Bank of International Settlements, labour’s share of income could collapse from 54% to just 20%, meaning workers could be forced to fight over the crumbs that billionaires drop at their tables. Adam Tooze, a Columbia University economic historian, notes that this could be a huge transformation in political power.

Financial Performance

SpaceXAI’s situation has led to concerns about the narratives that Musk builds with each media interaction, and how he presents his company’s financial performance. In the recently concluded earnings call, Musk appeared to be at variance with his senior leadership when it came to setting targets and interpreting statements.

It is a significant issue.

The company’s financial performance is closely watched by investors and analysts. Musk’s leadership and vision for the company are also under scrutiny. The allegations of unpaid bills and environmental concerns have added to the challenges faced by the company.

SpaceXAI’s datacentres are a critical part of its operations, and the company has invested heavily in their development. The use of transaction fees in some of these facilities has also been a subject of discussion.

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