In a case that could shape the future of the humanoid robotics industry, a former top safety executive at Figure AI has filed a wrongful termination lawsuit against the company, alleging he was fired for sounding the alarm on robots he claims are powerful enough to fracture human skulls.
The lawsuit, filed by former Head of Product Safety Robert Gruendel, paints a picture of a startup in a reckless race to market, allegedly silencing internal safety concerns in its pursuit of a multi-billion dollar valuation and ambitious deployment goals.
"Lethal Capabilities" and a Dismissed Warning
According to the court documents, Gruendel’s tenure at the Nvidia- and Jeff Bezos-backed company was marked by escalating safety fears. He alleges he directly warned CEO Brett Adcock and Chief Engineer Kyle Edelberg about the "lethal capabilities" of the company's humanoid robots.
His concerns were reportedly crystallized by a specific malfunction incident where a robot allegedly carved a deep, quarter-inch gash into a steel refrigerator door. Gruendel contends that instead of addressing the gravity of the situation, company leadership dismissed his warnings as mere "obstacles" to progress, not critical safety issues.
Termination Days After Complaint, Allegations of "Gutted" Safety
Gruendel was terminated in September. His lawyers note this came just days after he lodged formal, documented safety complaints, describing him as a whistleblower punished for doing his job.
The lawsuit further alleges a pattern of misrepresentation. Gruendel claims he was tasked with preparing a comprehensive safety roadmap for prospective investors—a key document during a funding round. However, he alleges that the very same month the investment round closed, the safety plan was "gutted." His filing suggests this could be interpreted as fraudulent misrepresentation, presenting a robust safety front to investors while allegedly dismantling it internally.
This claim is particularly striking given Figure AI's meteoric rise. The company was recently valued at a staggering $39 billion, a fifteen-fold increase since the beginning of 2024, with major investments from tech giants like Nvidia, Microsoft, and Jeff Bezos' venture fund.
Company Fires Back, Setting Stage for Legal Battle
Figure AI has vehemently denied the allegations. A company spokesperson stated that Gruendel’s termination was solely due to "poor performance" and asserted that they will "thoroughly discredit these baseless claims in court."
The legal confrontation arrives at a critical juncture for Figure AI, which has publicly stated an ambitious goal to have 200,000 of its humanoid robots deployed by 2029, a move projected to generate over $9 billion in revenue. The case throws a spotlight on the tension between breakneck technological development and foundational safety protocols in the booming AI robotics sector.
Analysts from Morgan Stanley predict the humanoid robot market will accelerate well into the 2030s, potentially becoming a $5 trillion market by 2050. Gruendel’s attorney notes that this lawsuit may be among the first whistleblower cases directly confronting the physical safety of humanoid robots, setting a potential legal precedent for the entire industry.
Gruendel is seeking economic, compensatory, and punitive damages and has requested a jury trial. The outcome will be closely watched by investors, tech ethicists, and competitors alike.