Robot startup Foundation misses payroll as CNBC details CEO’s $4.6 million company loan

Employees at military robot startup Foundation were still waiting for wages more than two weeks after its October 30 payroll deadline, CNBC reported on November 14. The cash shortage has angered some workers because CEO and co-founder Sankaet Pathak borrowed $4.6 million from the company in 2025 to buy a home, according to people familiar with the matter.

The San Francisco company builds humanoid robots for military purposes and counts Eric Trump among its investors. An April broadcast interview introduced Trump as its chief strategy adviser, although the size of his stake remains unclear. That public profile now sits alongside an immediate problem: finding enough cash to pay employees.

A personal loan inside a founder-controlled company

Pathak is Foundation’s sole board member and owns most of its shares, CNBC’s sources said. They described that concentration of control as enabling the borrowing. Pathak called it a short-term loan at the time, and existing investors learned of it through the company’s financial disclosures, according to those sources.

Public records cited by CNBC show that an LLC naming Pathak as its sole principal bought a $4.6 million property in Sausalito, California, in October 2025. Those records document the property purchase; the account of the company loan and its purpose comes from people familiar with Foundation.

A spokesperson for Pathak acknowledged receiving a detailed list of the story’s main points on Thursday, CNBC said, but did not respond to requests for comment. The article provided no response from Pathak addressing the loan or the missed wages.

A $3 billion fundraising ambition, not secured cash

Pathak has been seeking hundreds of millions of dollars at a $3 billion valuation since at least January, CNBC reported. That figure describes the valuation he is pursuing, not a completed investment. Prospective investors have raised concerns about corporate governance because he alone sits on the board, according to people familiar with the company.

The funding search concerns a business that has already assembled a technical workforce. Foundation hired dozens of robotics engineers and artificial intelligence specialists, including people recruited from Tesla and Amazon-owned autonomous vehicle company Zoox. Insiders told CNBC they fear the company could fold if Pathak cannot secure fresh funding.

The contracts behind the defense profile

CNBC’s investigation also challenged the origin of Foundation’s widely reported $24 million in Pentagon contracts. A person familiar with the matter said that figure came from government research contracts held by Boardwalk Robotics, which Foundation acquired in late 2024, rather than contracts Foundation itself had won.

Boardwalk’s Alex robot became the basis for Foundation’s first robot, the Phantom MK-1, that person said. A different person with direct knowledge of the acquisition told CNBC that the deal included robot-performance milestones that had not been reached.

Eric Trump did not respond to CNBC’s requests for comment. His spokesperson recently told the Financial Times that he had no involvement in Foundation’s management, operations, strategic decisions or commercial activities, including obtaining government contracts. That account distinguishes his investment and advisory title from responsibility for running the business.

For employees, the immediate commitment is narrower than Foundation’s fundraising ambitions. Pathak told staff in a memo during the week of November 14 that he was working to source money for back wages. It was a promise to find funds, not confirmation that workers had been paid.