Hustler Words – A high-stakes legal drama is unfolding around SandboxAQ, the AI and quantum computing startup that spun out of Google’s ambitious "moonshot" division. The company is currently embroiled in a contentious dispute with a former executive, Robert Bender, who filed a wrongful termination lawsuit laden with explosive allegations against CEO Jack Hidary. SandboxAQ has vehemently pushed back, characterizing the former employee’s actions as an attempt at "extortion" and labeling him a "serial liar."
Last month, Bender initiated legal proceedings, presenting a complaint that contained such potentially damaging accusations against Hidary that even the plaintiff himself opted to redact the most salacious details. In a forceful counter-response filed last Friday, SandboxAQ’s legal team, led by renowned attorney Orin Snyder of Gibson Dunn, dismissed the lawsuit as a "complete fabrication" designed for "improper and extortionate purposes."
Even the publicly accessible sections of the lawsuit, which Hustler Words has reviewed, reveal startling claims that, if substantiated by a court, could have significant repercussions. The case offers a rare glimpse into the often-opaque internal workings of Silicon Valley firms, where employee disputes, frequently bound by private arbitration clauses, can occasionally erupt into public spectacles.
Robert Bender, who served as Chief of Staff to Hidary from August 2024 to July 2025, asserts he was unlawfully dismissed after raising concerns about various alleged incidents. These purportedly included "sexual encounters" and instances of misleading financial data presented to investors. SandboxAQ, for its part, unequivocally denies these allegations. Snyder stated to Hustler Words, "We look forward to debunking these baseless allegations and exposing the lawsuit – as detailed in our answer – for what it is: an opportunistic and extortionate abuse of the judicial process."
The prominence of SandboxAQ, an AI quantum computing pioneer that originated as a Google (Alphabet) moonshot project under Hidary’s leadership, amplifies the significance of this legal battle. Hidary himself is a well-known figure in Silicon Valley, recognized for his long-standing involvement with the X Prize board. After its spin-off from Alphabet in March 2022, SandboxAQ quickly attracted a roster of influential investors, including billionaire and former Google CEO Eric Schmidt, who not only invested but also assumed the role of chairman. Other notable backers include Salesforce CEO Marc Benioff, venture capitalist Jim Breyer, and Bridgewater hedge fund founder Ray Dalio.
Bender’s attorneys, in a separate court filing, clarified that the redacted portions of the complaint "describe sexual encounters and the physical condition of non-party individuals observed by Plaintiff during business travel." This unusual move, where the accuser rather than the accused seeks redactions, has sparked speculation. While such tactics can protect innocent third parties, they can also serve as a strategic signal, implying that more damaging information could surface if a favorable settlement is not reached.
The unredacted sections of the suit further allege that Hidary utilized company resources and investor capital to "solicit, transport, and entertain female companions." An attached exhibit, reportedly a text message from Bender, explicitly mentions "prostitutes." Furthermore, Bender claims that Hidary offloaded tens of millions of dollars worth of his stock at a premium, based on what Bender describes as deceptive financial figures presented to prospective investors. He contends that revenue figures shown to the board were reportedly 50% lower than those presented to potential investors.
SandboxAQ’s legal team vigorously refutes each of these specific accusations. "The Company did not make fraudulent disclosures to investors regarding its tender offer or otherwise. The CEO did not misuse corporate assets," their response asserts. They further claim that Bender "invented these inflammatory allegations to manufacture statutory claims and to insulate himself from the consequences of his own misconduct."
Bender, conversely, alleges that SandboxAQ has launched a "malicious scorched earth campaign to destroy his reputation," asserting that his lawsuit was filed solely in response to this perceived smear effort. While the ultimate validity of these claims remains subject to judicial determination, several of Bender’s allegations resonate with an investigative report on SandboxAQ published by The Information in July. That report cited sources claiming Hidary used corporate jets for women he was dating and that the company’s revenues significantly lagged projections. Bender references The Information’s story in his lawsuit but denies being a source, a claim SandboxAQ disputes, alleging he was indeed a source and is now being untruthful.
Despite the swirling controversies, SandboxAQ continues to attract substantial investment. In April, the company successfully closed a Series E funding round, raising over $450 million from prominent investors including Ray Dalio, Horizon Kinetics, BNP Paribas, Google, and Nvidia. Additionally, SandboxAQ announced a $90 million secondary sale. The company states it has raised a total of $1 billion, with PitchBook estimating its current valuation at $5.75 billion, underscoring the significant financial stakes at the heart of this unfolding legal battle.
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