Foundation Future Industries, a San Francisco-based humanoid robotics startup backed by Eric Trump, has missed employee payroll amid mounting cash-flow problems after its co-founder and CEO, Sankaet Pathak, borrowed $4.6 million from the company to purchase a luxury home, according to a CNBC report.
The company missed its Oct. 30 payroll deadline, and employees had yet to receive their salaries, CNBC reported, citing people familiar with the matter. The development has raised questions about the startup’s financial management, corporate governance and ability to secure fresh investment.
Public records show that an LLC listing Pathak as its sole principal purchased a $4.6 million property in Sausalito, California, in October 2025. According to CNBC’s sources, Pathak had described the company funds as a short-term loan. Existing investors were aware of the transaction through the company’s financial disclosures.
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The company had also faced a payroll shortage in August. Employees reportedly received their salaries about two days late after an existing investor provided a temporary bridge loan. In a memo to employees this week, Pathak said he was working to secure funds to clear the outstanding wages, CNBC reported.
Governance concerns and $3 billion fundraising target
Pathak is Foundation’s sole board member and owns a majority of its shares, a corporate structure that has reportedly raised concerns among prospective investors. The arrangement also allowed him to obtain the $4.6 million loan without a separate board approval, according to people familiar with the matter.
Foundation has been seeking to raise hundreds of millions of dollars at a proposed $3 billion valuation since at least January. However, insiders cited by CNBC fear the company could collapse if it fails to secure fresh funding.
The startup was founded in April 2024 by Pathak, Tribe Capital CEO Arjun Sethi and Mike LeBlanc, co-founder of robotics company Cobalt Robotics. Foundation subsequently recruited dozens of robotics engineers and artificial intelligence specialists, including professionals from Tesla and Zoox.
Eric Trump’s investment and Pentagon contract claims
Foundation attracted national attention in April when Eric Trump, son of President Donald Trump, was introduced as an investor and the company’s chief strategy adviser. The size of his investment has not been publicly disclosed.
The company’s military robotics ambitions have also drawn political scrutiny. Foundation has promoted its Phantom humanoid robots for potential battlefield and defense applications, while reports about its government business have cited approximately $24 million in Pentagon contracts.
However, CNBC’s latest reporting clarifies an important distinction: the $24 million in government research contracts belonged to Boardwalk Robotics, a Florida-based company Foundation acquired in late 2024, rather than contracts directly secured by Foundation. The acquisition also provided the basis for Foundation’s first robot, the Phantom MK-1.
Eric Trump’s involvement prompted Sen. Elizabeth Warren, D-Mass., to question whether political connections played a role in the company’s government business. His spokesperson previously told the Financial Times that Trump had no involvement in Foundation’s management, operations, strategic decisions or government contracting activities.
Pathak’s previous startup adds to scrutiny
The payroll crisis has also revived questions surrounding Pathak’s previous venture, Synapse, a financial technology company that connected fintech businesses with community banks to provide services such as savings accounts and credit cards.
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Synapse collapsed in 2024, leaving more than 100,000 Americans unable to access a combined $265 million in deposits held through partner banks. The bankruptcy proceedings exposed discrepancies in customer accounts, with former FDIC Chair Jelena McWilliams, who served as bankruptcy trustee, estimating that as much as $96 million in customer funds was missing.
Pathak blamed banking partner Evolve for the discrepancies, while Evolve attributed responsibility to Synapse. The collapse became one of the most significant fintech failures involving customer funds in the United States. Foundation now faces a different but potentially consequential financial test as it attempts to maintain operations, pay employees and secure fresh capital while pursuing its ambitions in military humanoid robotics.