Nvidia-Backed Figure AI Sued By Former Safety Engineer Claiming Dangerous Robots And Fraudulent Cuts To Safety Plan - Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA)

Robert Gruendel, former head of product safety at Figure AI, filed a federal whistleblower suit alleging he was fired after warning executives that the company’s humanoid robots — backed by Nvidia and Microsoft — could cause severe harm (including forces sufficient to crack a human skull) and that a detailed safety roadmap he prepared was diluted after a funding round that helped secure an estimated $39 billion valuation; he cites a malfunction that left a cut in a steel refrigerator door as evidence. Figure AI says Gruendel was dismissed for poor performance; his attorney points to California whistleblower protections, and the dispute underscores potential regulatory, litigation and reputational risks for Figure AI and its high‑profile backers as the firm accelerates commercial deployment of humanoid robots.

Analysis

Robert Gruendel, the former head of product safety at Figure AI, has filed a federal whistleblower suit alleging he was terminated after warning that the company’s humanoid robots could cause severe harm — including forces sufficient to crack a human skull — and that one malfunction left a cut in a steel refrigerator door. He asserts that a detailed safety roadmap he prepared was “gutted” following a funding round that helped secure an approximate $39 billion valuation, potentially misrepresenting readiness to investors; Figure AI disputes the allegations, saying Gruendel was fired for poor performance.

The complaint singles out governance and disclosure risk at an AI robotics startup backed by high-profile partners Nvidia and Microsoft, and Gruendel’s attorney notes whistleblower protections under California law. The dispute raises legal, regulatory and reputational exposure for Figure AI that could prompt investor scrutiny or regulatory inquiries as commercialization accelerates.

Market signals show a moderately negative overall sentiment score (−0.45) with a modest market impact score (0.38); Benzinga’s per-ticker signals show NVDA sentiment slightly positive (0.2) and MSFT neutral (0.0). Key near-term drivers for investor attention are courtroom developments, any corroborating safety incidents or third-party audits, and official disclosures from Figure AI and its backers that clarify the state of safety controls and the roadmap.

Key Decisions for Investors

• Monitor court filings and company disclosures closely and refrain from increasing exposure to entities directly tied to Figure AI until independent safety audits or regulatory clarity reduce uncertainty
• Consider tactical hedges or position size reductions for public names with commercial links to Figure AI if additional adverse disclosures or incidents emerge, given the material legal and reputational risks
• Prioritize buying on confirmed remediation signals such as third-party safety audits, restored or detailed safety roadmaps, or explicit investor updates that address the alleged failures and governance concerns