Military Robotics Startup Backed by Eric Trump Misses Payroll as Founder Borrowed Millions
Foundation Future Industries, a San Francisco-based defense startup backed and advised by Eric Trump, failed to pay its employees on Oct. 30 as its cash reserves dried up, according to people with direct knowledge of the matter.
The payroll failure has sparked intense frustration inside the military humanoid robot maker. Employees remain unpaid while learning that CEO and co-founder Sankaet Pathak borrowed $4.6 million from the company last year as a short-term loan. Public records show an LLC listing Pathak as its sole principal used that exact amount to purchase a luxury home overlooking the San Francisco Bay in Sausalito, California, in October 2025.
Existing investors were aware of the $4.6 million loan through financial disclosures, but company insiders worry the firm could fold entirely if fresh capital doesn’t arrive soon. Pathak has spent months trying to raise hundreds of millions of dollars at a ambitious $3 billion valuation.
Promised Breakthroughs and Disputed Contracts
The financial strain hits Foundation just as Pathak claims the company is preparing to unveil a weapons-ready humanoid robot designed to compete with Chinese rivals. In media appearances, Pathak has suggested his robots could eventually patrol the U.S. Border with Mexico or perform combat duties in Ukraine.
“We have to win robotics in the United States of America,” Eric Trump said during an April interview praising the startup. “When you go up and interact with these robots … They fist bump you, they high five you, they follow your commands.” He added after visiting the facility: “I walked into his factory, and I couldn’t believe what I saw. I’m telling you, he’s doing a phenomenal job.”
However, public claims surrounding the business have repeatedly faced scrutiny. Reports circulating in broadcast interviews and news articles stated Foundation secured $24 million in Pentagon contracts. In reality, Foundation didn’t win those contracts directly. Instead, it acquired Florida-based Boardwalk Robotics in late 2024, inheriting government research contracts that Boardwalk had previously secured. Foundation used Boardwalk’s “Alex” robot to create its own initial model, the Phantom MK-1.
The firm previously ran into credibility issues in 2024 when prospective investor pitch letters cited an imminent investment and a $300 million purchase order from General Motors—an assertion the automaker explicitly rejected.
Political Spotlight and High-Stakes Investments
The high-profile involvement of Eric Trump has drawn sharp criticism from political opponents. Sen. Elizabeth Warren, D-Mass., publicly questioned whether the startup received defense business due to political favoritism.
“Eric Trump went on FOX to brag about winning ANOTHER multimillion-dollar contract from the Trump administration,” Warren wrote in an April 23 social media post. “This looks like corruption in plain sight.”
A spokesperson for Eric Trump told the Financial Times that he maintains “no involvement in Foundation’s management, operations, strategic decisions or commercial activities, including the solicitation, negotiation, procurement or execution of any government contracts.”
The ties remain part of a broader push into defense technology by the Trump family. A July Washington Post investigation revealed that investment vehicles linked to Eric Trump and Donald Trump Jr. Have backed startups that secured at least $3.2 billion in government business across military drones and autonomous systems.
Foundation was established in April 2024 by Pathak, Tribe Capital CEO Arjun Sethi, and Cobalt Robotics co-founder LeBlanc. Whether the company can survive its current cash crunch now depends entirely on Pathak securing new funding, while federal regulators continue addressing fallout from his prior venture, Synapse, where the Consumer Financial Protection Bureau opened a $55 million fund after customer money went missing.