Eric Trump-Backed Robot Maker Foundation Missed Payroll

Foundation Future Industries, the San Francisco maker of military humanoid robots backed and advised by Eric Trump, missed payroll on Oct. 30 and its workers still haven't been paid, according to people with direct knowledge of the matter. The company's founder and CEO, Sankaet Pathak, borrowed $4.6 million from the startup last year to buy a luxury home — money employees believe could have covered their wages.

Public records show an LLC naming Pathak as sole principal bought a $4.6 million Sausalito, California, property with "sweeping, cinematic views" of the San Francisco Bay in October 2025. A spokesman for Pathak acknowledged receiving a detailed list of the story's major points on Thursday but didn't respond to requests for comment.

What does the missed payroll mean for the company?

The cash crunch hits at a delicate moment. Pathak has said Foundation is close to unveiling a next-generation, weapons-ready robot meant to help the U.S. compete against Chinese rivals, while he simultaneously seeks hundreds of millions of dollars at a $3 billion valuation — a hunt that began at least as far back as January.

Insiders worry the company could fold without fresh funding. Pathak told employees in a memo this week that he was sourcing money to pay back wages, the people said.

This isn't the first payroll scare. Foundation also ran out of cash for wages in August, though employees waited only about two days after an existing investor provided a bridge loan.

Why does the $4.6 million loan sting?

Pathak is Foundation's sole board member and owns most of its shares — a structure that has raised governance concerns among prospective investors, the people said. That setup let him take the $4.6 million, which he described at the time as a short-term loan. Existing investors know about it through the company's financial disclosures.

"This is what happens in a company with no governance," one of the people said. "Are you just going to let it ride into the ground, and you ride off into the sunset?"

Did Foundation really win $24 million in Pentagon contracts?

Widely reported claims that Foundation won $24 million in Pentagon contracts don't hold up, according to a person with knowledge of the matter. Foundation didn't win those contracts. It acquired Florida-based Boardwalk Robotics in late 2024, and the government research contracts that firm had won account for the figure. Foundation used Boardwalk's robot Alex as the basis for its first machine, the Phantom MK-1. A separate person with direct knowledge said the Boardwalk deal included performance milestones the robot hasn't reached.

The pattern isn't new. In 2024, CNBC reported that letters Pathak sent prospective investors cited an imminent investment and a $300 million purchase order from General Motors — claims the automaker rejected. Co-founder Mike LeBlanc said at the time he was "embarrassed" by the marketing materials.

What role does Eric Trump play?

An April television interview introduced Eric Trump as a Foundation investor and chief strategy advisor; the size of his stake is unclear. He and his brother Donald Trump Jr. have invested in an array of defense firms, and a July Washington Post investigation found startups backed by investment vehicles linked to the brothers had secured at least $3.2 billion in government business.

"What we're about to unveil in the next couple of months [is] going to be the strongest humanoid robot that exists anywhere in the world, including China," Pathak said in that April interview.

"We have to win robotics in the United States of America," Eric Trump said. "When you go up and interact with these robots ... they fist bump you, they high five you, they follow your commands."

His involvement drew fire from Sen. Elizabeth Warren, D-Mass. "Eric Trump went on FOX to brag about winning ANOTHER multimillion-dollar contract from the Trump administration," Warren posted on April 23. "This looks like corruption in plain sight." Eric Trump didn't respond to requests for comment. His spokesperson recently told the Financial Times 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."

Where did Pathak come from?

Before Foundation, Pathak founded Synapse, a fintech middleman that enabled firms like Mercury, Dave and YieldStreet to offer accounts through small community banks. Synapse collapsed in 2024, leaving more than 100,000 Americans with $265 million locked out of FDIC-backed accounts. Bankruptcy trustee and former FDIC chair Jelena McWilliams said as much as $96 million in customer funds went missing; thousands of customers still lack access after more than two years. Regulators didn't step in until the Consumer Financial Protection Bureau sued Synapse, opening a $55 million relief fund. Pathak withdrew $320,000 in loans from Synapse as it spiraled toward bankruptcy, according to consultant and journalist Jason Mikula, and federal prosecutors convened a grand jury to probe possible criminal misconduct, the Wall Street Journal reported.

None of that deterred Eric Trump, who called Pathak a friend in April. "I walked into his factory, and I couldn't believe what I saw," he said. "I'm telling you, he's doing a phenomenal job."

Foundation's next payroll date — and whether Pathak closes a $3 billion round before the money runs out — will decide whether this story ends differently than Synapse's.