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Nvidia-Backed Figure AI Sued By Former Safety Engineer Claiming Dangerous Robots And Fraudulent Cuts To Safety Plan

Author: Ananya Gairola | November 22, 2025 04:02am

A former safety leader at Figure AI has alleged that he was fired after warning executives that the company's humanoid robots posed serious risks and that key safety measures were weakened after a major funding round.

Former Safety Head Says Robots Could Cause Fatal Injuries

Backed by Nvidia Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT), Figure AI is facing a federal whistleblower lawsuit from Robert Gruendel, the company's former head of product safety.

Gruendel claims he was terminated shortly after raising alarms about the strength and potential hazards of its humanoid robots.

He alleged that the machines were capable of causing severe harm, including generating enough force to crack a human skull, and says one malfunction left a noticeable cut in a steel refrigerator door.

He argues his warnings were dismissed as inconvenient rather than essential.

See Also: Jensen Huang Says Being A CEO Is About ‘Sacrifice’: Nvidia Chief Credits His Mother For Preparing Him For The Road Ahead: She Told Me I Was ‘Special’

Lawsuit Claims Safety Roadmap Was Softened For Investors

Gruendel further claims executives diluted a detailed safety roadmap he had prepared for prospective investors who later helped secure a valuation of roughly $39 billion.

He says the plan he presented was later "gutted," a move he believes could mislead backers about the company's readiness and compliance.

Company Denies Retaliation, Cites Performance Issues

Figure AI disputes the allegations, saying Gruendel was dismissed for poor performance and that his claims misrepresent the company's work, as reported by CNBC.

The AI startup did not immediately respond to Benzinga's request for comments.

His attorney countered that California law protects employees who report unsafe practices and said the case highlights emerging concerns around the rapid commercialization of humanoid robots.

Nvidia scores in the 98th percentile for Growth and the 92nd percentile for Quality in Benzinga's Edge Stock Rankings. See how it compares to other stocks here.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image via Shutterstock

Posted In: MSFT NVDA

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