Foundation raised $11 million in a pre-seed round in August 2024, led by Tribe Capital with additional contributions from angel investors. After an additional raise in Q1 2025, Foundation's total funding is approximately $21 million.

Foundation develops autonomous humanoid robots for unstructured industrial and defense environments, eliminating the need for facility modifications. Its primary product, the Phantom MK1, measures 5'9" in height, weighs 176 pounds, and supports payloads of up to 44 pounds while achieving a walking speed of 1.7 meters per second.

The Phantom MK1 features 19 degrees of freedom in its upper body, utilizing cycloidal actuators capable of delivering 160 Newton-meters of peak torque. These actuators maintain back-drivability below 1 Newton-meter, enabling safe interaction with humans. This hardware configuration supports tasks requiring both strength and precision, such as transporting car bumpers or navigating confined factory spaces.

The software stack integrates large language models for high-level reasoning with proprietary action models that convert task instructions into specific robotic movements. For example, when a factory operator uploads a task like relocating cases, the system decomposes the mission into detailed motion sequences. It coordinates these actions across the robot fleet using a shared world graph, which prevents task duplication and optimizes resource allocation.

The robots operate under a fleet coherence model, sharing real-time environmental and task data. This system dynamically reallocates robots based on changing conditions, such as task completion or obstacle detection, drawing parallels to GPU cluster coordination.

Foundation operates a B2B robotics-as-a-service (RaaS) model targeting industrial manufacturers and defense customers. Instead of selling robots outright, the company provides fleets of humanoid robots through service contracts. This structure enables customers to replace high-turnover human workers without incurring upfront capital expenditures.

The company focuses on automating tasks with annual worker attrition rates approaching 100%, particularly those that are dangerous or highly repetitive. This approach allows Foundation to deliver measurable value to customers while collecting operational data to refine its AI models. Each deployment generates recurring revenue and contributes to the training dataset required for scaling automation capabilities.

Foundation employs a dual-use strategy, addressing both commercial manufacturing and defense markets with a shared platform. This approach distributes development costs across multiple revenue streams and leverages defense contracts to fund advanced capabilities, which are subsequently applied to commercial use cases.

The business model incorporates a feedback loop in which each robot deployment enhances the system's overall performance. As robots execute tasks and encounter edge cases, the resulting data is integrated into Foundation's AI models. This process reduces reliance on human intervention over time, improving margins on existing contracts.

Tesla's Optimus program utilizes its existing supply chain, motor technology, and AI infrastructure originally developed for autonomous vehicles. The company prioritizes internal deployment to achieve positive unit economics before pursuing external sales, aiming to reduce costs through manufacturing scale. Tesla's concentration on consumer applications and absence in the defense market creates openings for Foundation in industrial and military segments.

Figure AI has raised $1.5 billion and targets production volumes of 100,000 units. The company has shifted away from OpenAI partnerships to develop proprietary AI models. Its BMW factory pilot and focus on custom actuators directly compete with Foundation's industrial strategy. However, Figure has explicitly excluded defense applications, leaving that segment to Foundation.

Agility Robotics specializes in warehouse and last-mile delivery automation with its Digit robot. The company has partnered with Amazon and is building the first US-based humanoid manufacturing facility. This focused approach enables faster return-on-investment validation but limits its addressable market compared to Foundation's general-purpose platform.

Boston Dynamics, owned by Hyundai, has decades of robotics expertise but has faced challenges with commercialization. Its recent expansion into industrial applications with Spot and Atlas introduces competition, though higher price points and complex deployment requirements may constrain its market penetration relative to Foundation's plug-and-play platform.

Apptronik and 1X Technologies are developing humanoid platforms for both commercial and specialized applications. These companies face similar technical hurdles in AI model development and manufacturing scale but lack Foundation's early emphasis on defense applications and fleet coherence capabilities.

Foundation plans to release the Phantom MK2 by 2026, featuring redesigned actuators and a 30% increase in payload capacity. This enhancement broadens the range of tasks the robots can perform within existing customer facilities. Additionally, the company's fleet coherence software layer could enable pure-software licensing to third-party robot manufacturers, contingent on achieving sufficient training levels for its foundation model.

Defense-specific variants constitute a separate product line designed for applications such as reconnaissance, ordnance handling, and casualty evacuation. These use cases align with Pentagon budget allocations projected to exceed $3 billion annually by 2030, significantly increasing the total addressable market beyond civilian manufacturing automation.

Foundation's initial deployments in automotive manufacturing serve as a model for scaling into adjacent industries, including beverage, glass, and consumer goods manufacturing. These sectors share similar high-attrition roles that can be addressed by the same humanoid form factor, which operates in 24/7 environments without requiring facility modifications.

Future market opportunities include construction, shipbuilding, and disaster response, contingent on advancements in payload capacity and environmental durability. Combined, these industries represent over $1 trillion in U.S. market potential and face comparable labor shortages that Foundation's robots aim to mitigate.

Opportunities for international growth are concentrated in Europe and Asia-Pacific, where aging workforces and defense modernization initiatives drive demand for automation. European markets, in particular, present near-term potential due to acute labor shortages and regulatory support for advanced manufacturing technologies.

Collaborations with local systems integrators could facilitate deployment in these regions while addressing export control requirements. Foundation's dual-use platform enables the company to target both commercial and allied defense markets globally, though compliance with ITAR regulations will necessitate careful market segmentation.

Capital intensity: Foundation's hardware-centric business model requires significant upfront investment in manufacturing, inventory, and field service capabilities before generating revenue. Each robot deployment involves physical assets that must be maintained, upgraded, and replaced, resulting in ongoing capital requirements. These demands could pressure cash flow during periods of scaling, particularly compared to software-only business models.

AI model dependency: Foundation's reliance on its proprietary foundation model for robotics creates risk tied to the model's performance and adaptability. The model depends on continuous training data from real-world deployments to remain effective. Advances in synthetic data generation or the development of superior AI approaches by competitors could render Foundation's human-in-the-loop training methodology less competitive, eroding its differentiation.

Export restrictions: Foundation's operations span both commercial and defense markets, exposing the company to potential changes in export control regulations. Adjustments to ITAR classifications or new restrictions on AI technology exports could limit international market access. Such regulatory shifts may force Foundation to prioritize domestic defense contracts over global commercial opportunities, constraining its addressable market.