Figure AI founder Brett Adcock is threatening to sue Fortune over claims that the startup overstated what its robots are actually doing at BMW’s Spartanburg factory.
In an April 6 article, Fortune tech correspondent Jason Del Rey wrote that he contacted BMW about a fleet of Figure 02 robots at its South Carolina plant after seeing a LinkedIn post by Adcock. He said the response he got was at odds with what Adcock boasted on social media.
“To my surprise, though, BMW spokesperson Steve Wilson said there was only a single Figure robot working in their South Carolina auto plant at any given time, and that the humanoid was picking up and maneuvering parts ‘during non-production hours,” he wrote.
The automaker declined to explain the discrepancy, he said, and directed further questions to the founder, who didn’t respond to inquiries. Del Rey stressed that no one is denying the partnership is real and that an onsite press event is scheduled for May.
The article also highlighted concerns about Figure AI’s reported ambitions of a $40 billion valuation. The shocking amount would place Figure’s value above Ford Motor Company and Spotify. They’re now going for Series C funding, signaling an aggressive push to scale after demonstrating early product value.
Adcock stayed quiet about the report until Friday, April 25, when he posted on X and LinkedIn that he’s willing to take legal action to defend his company. He characterized Fortune’s claims as “egregious inaccuracies and false reporting.”
“We knew building one of the most groundbreaking companies on the planet would not be easy, and media would ask questions,” he wrote on X. “What we won’t stand for are the mischaracterizations and downright lies written in the recent Fortune article by Jason Del Rey about Figure’s business and its partnerships.”
He said his team informed Fortune that “Figure’s litigation counsel will aggressively pursue all available legal remedies – including, but not limited to, defamation claims – to correct the publication’s blatant misstatements.”
“It’s ok for media to be skeptical of what they do not know,” he wrote. “It’s ot ok to publicize inaccuracies or twist words purely for clickbait.”
The escalation likely follows behind-the-scenes talks between Figure and its editors. I’ve also been contacted by a PR representative for Adcock and Figure, disputing elements of my recent blog post about the controversy and requesting a call.
They’ve probably sent a cease-and-desist letter demanding a retraction or correction. Fortune appears to be standing by its story and has not commented on Adcock’s statement.
If Figure actually takes Fortune to court, it’s likely an uphill battle that would risk exposing private internal docs. As a high-profile billionaire tech-founder, Adcock would need to prove that the article contained false statements of fact, that those statements were published with actual malice, and that the falsehoods caused him tangible reputational or financial harm.
Adcock most certainly qualifies as a public figure as the founder and face of Figure AI, a heavily covered startup seeking a $40 billion valuation. He’s been featured on 60 Minutes and prominent podcasts and he’s positioned himself as a visionary in artificial intelligence and robotics.
He’d need to show that Fortune’s article caused real harm. Since Figure is reportedly in the middle of a massive fundraising round, negative press could certainly give investors cold feet. If Figure’s momentum hasn’t demonstrably stalled, or if Fortune was just reporting what others were already discussing, damages are harder to prove.
The Wall Street Journal also published an article raising questions about Figure, but with more cautious language than Fortune. Adcock did not mention the newspaper in his post about litigation.
According to WSJ, a BMW spokesman said it had three of the robots at its facility for technical evaluation as of April 1. The spokesman told WJJ that only one robot was in use at a time, practicing picking up and grasping parts during non-production hours in the plant’s body shop. The following week, however, the BMW rep told the newspaper that there were now more than three robots on-site in use in non-production and live-production situations.
“When the Figure robots arrived at the BMW factory, the production line was shut for routine maintenance, said former Figure employees,” the WSJ reported. “The robots did pick up and move pieces of sheet metal, but they weren’t working with humans or at the speed required for long periods, these people said.”
A few weeks earlier, Adcock discussed the project in an interview with futurist Peter Diamandis, a Figure investor.
“We have robots there (at BMW) that are operating every single day,” he said during the session. “They’re in Spartanburg, SC. They’re helping build cars.”
As the humanoid robotics industry expands, companies like Figure face challenges as the gap between expectations and reality widens.
Chinese firms like Unitree Robotics and EngineAI frequently showcase the advanced capabilities of their robots, which are primarily intended for researchers and developers at this point. As robots like the Unitree G1 become commercially available, customers have expressed disappointment that the advanced movements require significant expertise and training to achieve.
Figure is seen as one of the biggest threats to Tesla as it plans to scale production of its Optimus humanoid robots. After a fleet of Tesla Bots stole the show at the company’s fall 2024 “We, Robot” event, critics quickly called the automaker out for not disclosing that they were primarily controlled by teleoperation.