Foundation Future Industries, a San Francisco-based developer of military humanoid robots, failed to meet payroll obligations in October, leaving employees without compensation. The cash shortage occurred amid broader financial challenges at the startup, which is led by CEO and co-founder Sankaet Pathak. According to people familiar with the company’s finances, Pathak borrowed $4.6 million from Foundation last year to purchase a property in Sausalito, California, a transaction completed in October 2025. The loan has become a point of contention internally, as employees view the funds as money that could have been allocated to covering wages.
Foundation has gained attention for its stated plans to develop advanced humanoid robots for military applications, with Pathak claiming the company is preparing to unveil a next-generation weapons-ready system. The startup has also announced winning $24 million in Pentagon contracts, though investigations revealed these contracts were actually acquired through Boardwalk Robotics, a Florida firm that Foundation acquired. Pathak has been actively seeking hundreds of millions in new funding at a $3 billion valuation. The company announced Eric Trump, son of the U.S. president, as an investor and chief strategy advisor in April, drawing scrutiny from lawmakers concerned about potential nepotism in defense contracting.
Pathak’s involvement with Foundation follows his previous venture, Synapse, a fintech infrastructure company that collapsed in 2024 and left over 100,000 Americans unable to access approximately $265 million in deposits. At Foundation, Pathak holds the position of sole board member and majority shareholder, a governance structure that has raised concerns among prospective investors. The company previously experienced a payroll shortfall in August but secured a bridge loan from an existing investor to resolve the issue. Pathak recently communicated to staff that he is working to secure funding to cover back wages.
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