Figure AI whistleblower: Fired employee claims robot could ‘fracture a human skull’

Figure AI, a humanoid robot developer backed by investors including Nvidia, is facing a lawsuit filed by its former head of product safety. The suit alleges wrongful termination following the engineer’s warnings to top executives that the company’s robots possessed the potential to cause serious harm, specifically citing the capability to “fracture a human skull.”

Robert Gruendel, the principal robotic safety engineer, filed the suit on Friday in the Northern District of California. Gruendel’s legal team characterizes him as a whistleblower, claiming his dismissal occurred in September, shortly after he raised “direct and documented safety complaints.”

This lawsuit comes on the heels of Figure AI’s recent funding round, led by Parkway Venture Capital, which valued the company at a reported $3.9 billion. This represents a substantial increase from its early 2024 valuation, marking a significant rise in investor confidence within a short period. Prior funding rounds have secured backing from high-profile investors such as Jeff Bezos, Nvidia, and Microsoft.

According to the complaint, Gruendel alerted CEO Brett Adcock and Chief Engineer Kyle Edelberg to the robot’s potentially dangerous capabilities. The lawsuit details an incident where a robot “carved a ¼-inch gash into a steel refrigerator door during a malfunction,” further emphasizing his concerns.

The complaint also indicates that Gruendel cautioned against downgrading a “safety road map” presented to prospective investors. He feared that the subsequent alteration of this safety plan, which he believes contributed to their investment decision, shortly after the funding round concluded, “could be interpreted as fraudulent.”

The lawsuit claims Gruendel’s concerns were not adequately addressed, being “treated as obstacles, not obligations.” Figure AI allegedly cited a “vague ‘change in business direction'” as the reason for his termination.

Gruendel is seeking economic, compensatory, and punitive damages and has requested a jury trial.

As of now, Figure AI has not issued a statement in response to a request for comment.

Robert Ottinger, Gruendel’s attorney, communicated via email that, “California law protects employees who report unsafe practices.”

“This case involves important and emerging issues, and may be among the first whistleblower cases related to the safety of humanoid robots,” Ottinger added. “Mr. Gruendel looks forward to the judicial process exposing the clear danger this rush to market approach presents to the public.”

The humanoid robot market, while still in its early stages, is attracting significant attention and investment. Beyond Figure AI other notable industry players such as Tesla, with its Optimus project, and Boston Dynamics, renowned for its advanced robotics, are actively developing and refining their offerings. Chinese firm Unitree Robotics is also positioning itself for growth with plans for a potential IPO. A Morgan Stanley report projects substantial growth, estimating the market could reach $5 trillion by 2050, driven by increased adoption in the 2030s.