Figure AI sued by fired whistleblower who warned startup's robots could 'fracture a human skull'

Figure AI, a startup renowned for its humanoid robots and backed by Nvidia, is facing a lawsuit from its former head of product safety. Robert Gruendel claims he was unjustly dismissed after raising serious concerns about the safety of the company's robots, which he alleged could potentially cause severe injuries, including the ability to fracture a human skull. The lawsuit, filed in the Northern District of California, highlights Gruendel's role as a whistleblower. His termination in September came shortly after he made significant safety complaints to the company's top executives. His attorneys assert that his warnings were ignored, and instead, the company falsely attributed his firing to a vague 'change in business direction.' The lawsuit arrives just two months after Figure AI achieved a staggering valuation of $39 billion, thanks to a funding round led by Parkway Venture Capital. This marks a dramatic increase in value from early 2024 when the company attracted investments from notable figures such as Jeff Bezos, Nvidia, and Microsoft. In the complaint, Gruendel detailed alarming incidents, including a malfunction where one of the robots reportedly carved a quarter-inch gash into a steel refrigerator door. He expressed concerns to CEO Brett Adcock and chief engineer Kyle Edelberg about the potential dangers posed by the robots and urged them not to diminish the company's safety protocols. Gruendel's legal team argues that the safety plan he had presented to investors, which played a crucial role in securing their backing, was compromised shortly before the funding round closed. This situation led Gruendel to question whether the company's actions could be viewed as fraudulent. As Gruendel seeks economic, compensatory, and punitive damages through a jury trial, Figure AI has yet to respond publicly to the lawsuit. The humanoid robot market is still in its infancy, with competitors like Tesla and Boston Dynamics also exploring advanced robotics, while firms such as Unitree Robotics are gearing up for future IPOs. According to a report by Morgan Stanley, the adoption of humanoid robots is expected to gain momentum in the 2030s and could surpass $5 trillion by 2050.