Foundation Future Industries, a San Francisco startup focused on military humanoid robots, failed to pay its employees on October 30. This cash shortage has left workers without their paychecks, a situation that feels particularly bad given that the company CEO and co-founder, Sankaet Pathak, allegedly borrowed 4.6 million dollars from the firm last year to buy a luxury home, CNBC reports.
Public records indicate that an LLC naming Pathak as the sole principal bought a property in Sausalito, California, for that amount in October 2025. The home reportedly offers sweeping, cinematic views of the San Francisco Bay.
Pathak has been trying to raise hundreds of millions of dollars at a $3 billion valuation for the company. Foundation is currently facing a difficult moment as Pathak claims the team is close to showing off a next-generation, weapons-ready robot meant to help the United States compete with Chinese rivals. While Pathak has stated the firm is close to a major reveal, the company is dealing with internal frustration regarding the borrowed money. One person familiar with the situation said, “This is what happens in a company with no governance. Are you just going to let it ride into the ground, and you ride off into the sunset?”
The startup gained attention earlier this year when Eric Trump was introduced as an investor and chief strategy advisor
During an April television interview, Eric Trump praised the technology, stating, “We have to win robotics in the United States of America. When you go up and interact with these robots … they fist bump you, they high five you, they follow your commands.” Eric Trump also described Pathak as a friend, noting, “I walked into his factory, and I couldn’t believe what I saw. I’m telling you, he’s doing a phenomenal job.”
Despite widespread reports that Foundation secured 24 million dollars in Pentagon contracts, a person with knowledge of the matter claims the company did not actually win those contracts. Instead, the firm acquired Florida-based Boardwalk Robotics in late 2024, and the government research contracts held by that entity account for the claim. Foundation reportedly used the Boardwalk robot named Alex as the foundation for its own Phantom MK-1 model. A separate person noted that the deal for Boardwalk included performance milestones that the robot has yet to reach.
Pathak has a history involving startup failures. His previous firm, a fintech company called Synapse, collapsed in 2024 and left thousands of Americans locked out of their savings. A bankruptcy trustee stated that as much as 96 million dollars in customer funds went missing during that collapse. Pathak also reportedly withdrew 320,000 dollars in loans from Synapse as it moved toward bankruptcy.
At Foundation, Pathak is the sole board member and owns most of the shares, a structure that has bothered prospective investors. This setup allowed Pathak to take the 4.6 million dollar loan, which he described as a short-term arrangement.
A spokesperson for Pathak acknowledged receiving a list of these points on Thursday but did not respond to requests for comment. Regarding his involvement with Foundation, a spokesperson for Eric Trump told the Financial Times that he had “no involvement in Foundation’s management, operations, strategic decisions or commercial activities, including the solicitation, negotiation, procurement or execution of any government contracts.”
Pathak reportedly told employees in a memo this week that he is working on sourcing money to pay the back wages.
Published: Nov 15, 2026 09:30 am