A bitter courtroom fight has erupted between SandboxAQ and one of its former top executives, with accusations flying on both sides and deeply personal claims now part of the public record. SandboxAQ, a Google moonshot spinout, says a former executive is attempting extortion, after the ex-employee filed a wrongful termination lawsuit packed with allegations so explicit that even he chose to black them out.
The complaint, filed last month, targets SandboxAQ CEO Jack Hidary and paints a picture of alleged misconduct inside the high-profile artificial intelligence and quantum computing company. On Friday, SandboxAQ fired back forcefully. In a sharply worded legal response, the company’s attorneys branded the former employee a “serial liar” and said the lawsuit was built on “false claims for improper and extortionate purposes.”
A Rare Look Inside a Secretive Startup
Although significant portions of the lawsuit are redacted, the visible sections still contain claims that, if proven, could seriously damage the company and its leadership. The case offers a rare public glimpse into internal disputes at a Silicon Valley startup, a space where conflicts are usually kept out of sight through private arbitration agreements.
The lawsuit was filed in mid-December by Robert Bender, who served as Jack Hidary’s chief of staff from August 2024 until July 2025. Bender claims he was fired after raising concerns about several alleged incidents. According to his complaint, some of those concerns involved purported sexual encounters during business travel, while others related to what he says were misleading financial representations made to investors.
Company Denies All Claims, Calls Lawsuit a Fabrication
SandboxAQ has categorically rejected the accusations. The company’s legal team, led by Orin Snyder of Gibson Dunn, said the lawsuit is a complete invention.
“This case is a complete fabrication,” Snyder said in a statement. “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.”
Why the Case Is Drawing So Much Attention
The dispute is drawing heightened interest because of SandboxAQ’s pedigree and the powerful figures connected to it. The company began life as a moonshot project inside Google’s parent company, Alphabet, before spinning out as an independent venture in 2022 with Hidary as CEO.
Since then, SandboxAQ has attracted an elite roster of backers. Billionaire former Google CEO Eric Schmidt invested early and became chairman. Other high-profile supporters include Salesforce founder Marc Benioff, venture capitalist Jim Breyer, and Bridgewater founder Ray Dalio. Hidary himself is also well known in the tech world as a long-time board member of the XPRIZE Foundation.
The Mystery Behind the Redactions
In a separate court filing, Bender’s attorneys say the blacked-out portions of the lawsuit describe “sexual encounters and the physical condition of non-party individuals observed by Plaintiff during business travel.” That means the allegations involve people who are not being sued — an unusual situation, since defendants typically seek redactions, not plaintiffs.
Legal experts often note that such redactions can serve different purposes. They may be used to protect third parties who are not accused of wrongdoing. But they can also function as leverage, signaling that more damaging details could be made public if a case does not settle.
Financial Allegations and Claims of Misused Resources
The unredacted sections of the complaint provide broader outlines of the accusations. Bender alleges that Hidary used company resources and investor money to “solicit, transport, and entertain female companions.” One exhibit attached to the lawsuit includes a text message in which Bender references prostitutes.
He also claims that Hidary sold tens of millions of dollars’ worth of stock at a premium after allegedly presenting inflated financial information to potential investors. According to the lawsuit, revenue figures shown to investors were allegedly far higher than those shared with SandboxAQ’s own board.
SandboxAQ strongly disputes all of this. In its response, the company says it made no fraudulent disclosures, denies any misuse of corporate assets, and accuses Bender of inventing sensational claims to shield himself from the consequences of his own conduct.
Competing Narratives and an Ongoing Feud
Bender, meanwhile, says the company is trying to destroy his reputation. His complaint argues that he only turned to the courts after what he describes as a “malicious scorched-earth campaign” following his termination.
Some of his allegations echo reporting published last summer by The Information, which cited sources claiming that company resources were used for personal travel and that SandboxAQ’s revenues lagged far behind projections. Bender references that article in his lawsuit but denies being one of its sources. SandboxAQ, however, insists that he was involved and is not telling the truth.
Investor Confidence Remains Strong
Despite the controversy, SandboxAQ has continued to attract enormous financial backing. In April, the company announced a Series E round of more than $450 million from investors including Ray Dalio, Horizon Kinetics, BNP Paribas, Google, and Nvidia. It also disclosed a $90 million secondary share sale.
The company says it has now raised approximately $1 billion in total funding.
As the case moves forward, a jury — not the headlines — will ultimately decide which version of events holds up. For now, the lawsuit stands as a stark reminder of how quickly internal disputes at elite tech companies can spill into public view.
