Figure AI, a startup that is developing humanoid robots with backing from Nvidia, is facing a lawsuit from its former head of product safety.
The lawsuit claims he was wrongfully dismissed after raising serious concerns about the potential dangers posed by the company’s robots, which he said could be strong enough to harm a person.
The plaintiff, Robert Gruendel, who worked as a principal robotic safety engineer, filed the lawsuit in a federal court located in Northern California.
His lawyers describe him as a whistleblower who was let go just days after making significant safety complaints to the company’s executives.
This legal action comes shortly after Figure AI was valued at $39 billion in a funding round led by Parkway Venture Capital.
This valuation represents a dramatic increase from early 2024, where the company was valued at $2.6 billion following investments from high-profile figures such as Jeff Bezos, Nvidia, and Microsoft.
In his complaint, Gruendel’s attorneys assert that he warned the company’s CEO Brett Adcock and chief engineer Kyle Edelberg about the potentially lethal nature of their robots. He mentioned that one robot had already caused a significant dent in a steel refrigerator door during a malfunction.
Gruendel also expressed concerns that the company was attempting to undermine a safety plan he had created, which was crucial for attracting investors.
He believed that this safety plan had been compromised just as Figure AI secured funding, raising the possibility of fraudulent behavior.
According to the lawsuit, Gruendel’s warnings were dismissed as mere obstacles to business rather than serious safety concerns.
The company claims that his termination was due to a vague shift in business strategy, which he argues was just a cover for his dismissal.
He is currently seeking various forms of damages, including economic, compensatory, and punitive, and has requested a jury trial to address his claims.
A spokesperson for Figure AI stated that Gruendel’s termination was due to poor job performance and characterized his allegations as false, promising to refute them in court.
Gruendel’s lawyer, Robert Ottinger, emphasized that California law protects employees who report unsafe practices. He noted that this case addresses critical issues and may set a precedent as one of the first whistleblower cases regarding humanoid robot safety.
The market for humanoid robots is still in its early stages, with companies like Tesla and Boston Dynamics also working on advanced robotics.
Meanwhile, Unitree Robotics from China is preparing for an initial public offering. A report from Morgan Stanley predicted that the adoption of humanoid robots could significantly grow in the coming years, potentially exceeding $5 trillion by 2050.
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