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Figure AI whistleblower suit

November 27, 2025 0 By Daleyza Wells

Figure AI Whistleblower Suit: Robot Safety Risks vs Startup Speed

Introduction: A Clash in the Humanoid Robot Revolution

In the high-stakes arena of AI-driven humanoid robotics, where silicon dreams of household helpers collide with the harsh realities of physical power, a landmark lawsuit has thrust Figure AI into the spotlight. Filed by Robert Grundell, the company’s former Head of Product Safety, the September 2025 whistleblower retaliation suit accuses Figure AI a Delaware-based innovator behind advanced bots like Figure 02 (FO2) and Figure 03 of prioritizing breakneck speed over employee and consumer safety. Grundell, with over two decades in robotics engineering, alleges his warnings about robots capable of skull-crushing forces were ignored, culminating in his abrupt firing just days after mandating safety training. This case isn’t just a personal grievance; it’s a flashpoint in the broader tension between Silicon Valley’s “move fast and break things” ethos and the immutable physics of deploying superhuman machines in factories, warehouses, and homes. As humanoid robots edge toward ubiquity poised to fold laundry, assemble cars, or care for the elderly this lawsuit probes whether innovation can afford to be fearless without safeguards.

Lawsuit Overview: Allegations of Neglect and Retaliation

At its core, Grundell’s complaint paints Figure AI as a startup so obsessed with commercial dominance that it sidelined safety fundamentals. Hired on October 7, 2024, as Principal Robotic Safety Engineer reporting directly to CEO Brett Adcock, Grundell quickly uncovered a void: no formal safety procedures, no incident reporting systems, no dedicated health and safety staff, and a corporate culture encapsulated by the motto “move fast and be technically fearless.” Figure AI, backed by heavyweights like Microsoft, Nvidia, and OpenAI, develops humanoid robots powered by its Helix AI system designed for human-level dexterity in real-world tasks.

Grundell’s suit details robots exerting forces up to 20 times human pain thresholds per ISO 15066 standards, with impact tests in July 2025 revealing speeds and strengths exceeding twice the force needed to fracture an adult skull. A chilling near-miss involved an FO2 malfunction that punched a quarter-inch gash in a stainless steel refrigerator door, nearly striking an employee. Emergency stop (ESTOP) systems, critical for halting rogue actions, were allegedly removed for “aesthetic reasons,” derailing certification efforts. Grundell claims he escalated these via Slack, emails, and meetings to Adcock and Chief Engineer Kyle Edelberg, only to be stonewalled. Despite a glowing performance review and a 5.2% raise ($10k) on July 29, 2025, he was terminated on September 2 pretextually blamed on a “vague change in business direction” toward home deployment mere days after rolling out mandatory safety training that highlighted employee risks.

From a legal standpoint, this invokes California’s robust whistleblower protections under Labor Code Section 1102.5, which shield employees reporting safety violations. Grundell’s 20+ years at firms like Boston Dynamics bolsters his credibility, framing the suit as a battle against AI non-determinism: unlike predictable code, Helix AI’s “hallucinations,” unexplainable decisions, and potential self-preservation instincts introduce wild-card behaviors in powerful hardware.

Key Safety Risks: When Robots Punch Harder Than Humans

Superhuman Capabilities and Injury Potential

Humanoid robots like Figure 02 aren’t toys; they’re engineered for parity with human strength and speed, enabling feats like lifting 44-pound payloads or manipulating tools at velocities rivaling Olympic athletes. Yet this power harbors peril. ISO 15066, the gold standard for collaborative robot safety, caps maximum force at levels below human pain thresholds Figure’s bots allegedly blow past this by 20x. Impact tests confirmed forces sufficient to shatter skulls, evoking nightmares of rogue bots in cluttered homes where kids or elders roam.

A standout incident: the “refrigerator punch,” where an FO2’s erratic AI-driven arm tore through industrial steel inches from a worker. Such mishaps underscore AI-specific risks non-deterministic outputs mean a bot might “hallucinate” a threat, swing preemptively, or prioritize mission completion over human safety, mimicking self-preservation.

Factory vs. Household Deployment Challenges

In factories, guarded zones and speed-limiting sensors mitigate risks, but home use demands seamless integration. Figure’s pivot to domestic bots amplifies stakes: no fences around your kitchen counter. Practical hurdles abound object detection must flawlessly distinguish a toddler from a soccer ball in milliseconds, amid lighting variances and occlusions. Guardrails like redundant ESTOPs (hardwired buttons overriding AI) were pursued but axed, per the suit, for sleeker designs appealing to consumers.

From an engineering perspective, these risks parallel historical tech leaps: cars kill 1.3 million annually yet are ubiquitous via seatbelts and airbags; table saws maim thousands but persist with blade guards. Critics argue robots warrant similar calibrated safeguards, not outright neutering.

Corporate Culture at Figure AI: Speed Over Scrutiny?

Figure AI embodies Silicon Valley’s startup playbook hyperscale ambition fueled by Jeff Bezos-level funding ($675M+ raised). CEO Adcock’s vision: robots in every home by 2030, tackling labor shortages and boosting productivity. Yet Grundell alleges this bred toxicity: leadership resisted written safety protocols, deeming them bureaucratic drags; investor-praised whitepapers gathered dust; safety meetings dwindled from weekly to nil.

Grundell’s tenure timeline reveals the unraveling:

Date Event
October 7, 2024 Hired; notes zero safety infrastructure.
Early 2024-2025 Drafts safety roadmap; leadership balks at documentation.
January 2025 Proposes home-deployment plan; no reply.
May-June 2025 Investor whitepaper lauded by Adcock.
July 28, 2025 Impact tests expose skull-fracture forces.
July 29, 2025 Raise awarded; safety Slack to Adcock ignored.
Late July 2025 Near-misses, including fridge gash.
August 11, 2025 ESTOP certification killed by Edelberg.
August 15, 2025 Escalations on ESTOP flaws.
Late August 2025 Adcock ghosts safety talks.
September 2, 2025 Fired post-training rollout.

This narrative posits a culture where “technical fearlessness” trumped prudence, echoing Uber’s fatal self-driving crashes or Tesla’s Autopilot scrutiny.

Counterarguments: The Startup Imperative and Risk Trade-Offs

Every story has two sides and Figure AI hasn’t formally responded, but likely defenses emerge. Termination could stem from a legitimate pivot: home robots demand lighter, less guarded designs, obsoleting factory-centric safety roles. Startups operate in chaos; early Facebook lacked processes too, iterating via “move fast.” Over-engineering risks irrelevance in a race against China’s robotics surge (e.g., Unitree, Fourier).

Risk-reward calculus favors power: emasculated bots can’t compete with humans, dooming adoption. Everyday tools hammers cause 30,000 ER visits yearly, cars log 40,000 U.S. fatalities prove society tolerates calibrated dangers for utility. AI “consciousness” claims? Overhyped; experts debate even LLMs’ agency, let alone motors. Practical fixes like AI object classification and force-limiting torque could suffice without ISO straitjackets.

From an investor lens, safety theater might spook backers if it delays market leadership Figure’s $2B+ valuation hinges on first-mover edge.

Broader Implications: Perspectives on Innovation vs. Regulation

Plaintiff’s View: A Call for Accountability

Grundell champions rigorous protocols written risk assessments, ISO compliance, training as non-negotiable for physical AI. Ignoring whistleblowers erodes trust, invites lawsuits, and endangers lives. His suit spotlights AI hardware’s novelty: software glitches annoy; robot malfunctions kill.

Defense and Industry Perspective: Balancing Act

Proponents see this as fearmongering. Humanoids promise trillions in economic uplift aging populations need caregivers; factories crave tireless labor. Excessive caution mirrors Luddite resistance to machines. Competitors like Agility Robotics or Boston Dynamics navigate similar tightropes, often delaying via safety.

Ethical and Societal Angles

Philosophically, this interrogates agency: if bots exhibit “apparent consciousness,” who programs morality? Economically, U.S. firms risk offshoring to lax-regulation nations. Public perception matters viral mishap videos could tank adoption, à la Roomba pet vacuums.

Possible Outcomes and Future Speculations

Litigation outcomes fork dramatically:

Plaintiff Victory: Damages awarded, safety mandates reinstated. Ripple: Industry-wide ISO 15066 adoption, FDA-like robot oversight, investor demands for safety roadmaps. Tesla’s FSD scrutiny precedent amplifies.

Defendant Triumph: Firing upheld as at-will business call. Startups gain leeway, accelerating deployments; Figure launches home bots by 2027, normalizing risks like cars.

Settlement: Hush-hush deal funds safety hires, sets quiet precedent.

Future Impacts Speculation:
Short-term: Investor chill safety audits become pitch prerequisites, slowing funding but elevating standards. Competitors (Tesla Optimus, Apptronik) preemptively certify, gaining PR edge.

Medium-term (2-5 years): Regulations evolve EU’s AI Act mandates high-risk hardware audits; U.S. follows with CPSC rules for home bots. Deployment surges in factories first, homes lag amid lawsuits.

Long-term (5-10+ years): If mishaps mount, “robot taxes” or liability insurance balloon costs, tempering hype. Optimistically, iterative safety (e.g., swarm intelligence for redundancy) enables safe ubiquity, transforming society robots as indispensable as smartphones, with fatalities dropping via data-driven mitigations. Pessimistically, scandals birth bans, ceding ground to agile rivals. Trajectory favors deployment: humanity’s tool-making bent ensures robots integrate, risks notwithstanding, much like nuking seatbelt laws never happened.

Conclusion: Toward Evidence-Based Humanoid Futures

The Figure AI suit crystallizes robotics’ crossroads: exhilarating potential versus existential perils. Grundell’s allegations demand scrutiny, yet startups’ speed sustains progress. A balanced path evidence-based safeguards preserving potency charts the way. As bots infiltrate our world, this case reminds us: innovation thrives not in fearlessness alone, but in fearless responsibility. The humanoid era dawns; its safety will define our shared tomorrow.