Figure AI, a humanoid robot developer backed by Nvidia and other major investors, has been sued by its former head of product safety, who alleges he was wrongfully terminated after raising concerns about potential hazards posed by the company’s machines. The lawsuit was filed on Friday in the U.S. District Court for the Northern District of California.
The plaintiff, Robert Gruendel, a former principal robotic safety engineer, claims he was dismissed in September shortly after submitting what he described as his most serious and well-documented safety complaints. According to the filing, he told senior leadership that the robots were capable of causing severe harm and pointed to an incident in which a malfunction reportedly damaged a steel refrigerator door. The complaint states that Gruendel warned executives that the machines’ capabilities required greater safety controls, including maintaining a roadmap presented to investors.
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Gruendel also alleges the company altered its internal safety planning after securing a major funding round, raising concerns about how such changes might be interpreted by investors. His attorneys argue that his warnings were not taken seriously and that his concerns were viewed as impediments rather than responsibilities. The lawsuit seeks economic, compensatory and punitive damages and requests a jury trial.
Figure AI, valued at $39 billion following its latest fundraising round, rejected the allegations. A company spokesperson said Gruendel was dismissed for poor performance and described his claims as false, adding that Figure intends to challenge them in court. The startup has attracted investment from firms and individuals including Parkway Venture Capital, Jeff Bezos, Nvidia and Microsoft.
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Gruendel’s attorney said the case highlights early but significant safety questions in the growing humanoid robotics sector, noting that state law protects employees who report unsafe practices. The broader market for humanoid robots remains in its early stages, with companies such as Tesla, Boston Dynamics and China’s Unitree Robotics developing similar platforms. Analysts have projected adoption could accelerate in the 2030s, with the sector potentially surpassing $5 trillion by 2050.
Source: CNBC