Employees at Foundation, a San Francisco startup building humanoid robots for military use, are currently without paychecks after the company missed its October payroll. The financial crisis has sparked outrage among the workforce, who learned that CEO and founder Sankaet Pathak borrowed 4.6 million dollars from the company last year to purchase a luxury residence in Sausalito. Public records indicate the property offers sweeping views of the San Francisco Bay, leading insiders to lament that funds used for the home could have instead ensured their salaries were met.
The instability at Foundation arrives while the company attempts to project an image of immense growth and geopolitical importance. Backed and advised by Eric Trump, the firm has claimed to be developing a weapons ready robot designed to outperform Chinese competitors on future battlefields. While Pathak has sought hundreds of millions in new funding at a staggering 3 billion dollar valuation, critics point to a lack of corporate governance, noting that Pathak serves as the sole board member and holds most of the shares.
Questions regarding transparency have dogged the company long before this latest payroll failure. Although reports previously suggested Foundation had won 24 million dollars in Pentagon contracts, sources reveal those contracts actually belonged to Boardwalk Robotics, a firm Foundation acquired rather than winning the bids independently. Additionally, past claims involving potential deals with General Motors were flatly denied by the automaker, adding to a pattern of aggressive marketing that has left some colleagues feeling embarrassed.
This current turmoil follows a history of volatility for Pathak, whose previous fintech venture collapsed in 2024 and left thousands of users unable to access their savings. As Senator Elizabeth Warren and other critics raise concerns over possible nepotism due to Eric Trump’s involvement, employees now face an uncertain future. In a recent memo, Pathak informed his staff that he is actively searching for funds to cover their back wages as the company teeters on the edge of collapse.
