San Francisco-based Factory, a developer of autonomous AI agents for software engineering, has secured $200 million in a new funding round. This investment brings the company's valuation to $5 billion, more than tripling its previous valuation of $1.5 billion recorded just five months ago in April.
The round attracted major institutional investors, including Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, and Sound Ventures. Additionally, Salesforce CEO Marc Benioff and hedge-fund manager Brad Gerstner participated as angel investors.
Founded in 2023 by Matan Grinberg and Eno Reyes, Factory provides AI agents capable of handling end-to-end software development tasks. These include writing code, debugging, testing, and maintaining systems, aiming to transition engineering teams from individual coding assistants to autonomous software factories.
The company operates in a competitive landscape alongside firms like Anthropic, OpenAI, SpaceX, Cursor, and Cognition. The latter recently secured $2 billion at a $48 billion valuation, highlighting the significant capital currently flowing into the AI-assisted coding market.
Factory's leadership emphasizes that the industry is shifting toward systems that require less human intervention. As enterprises seek measurable economic returns from AI, the company is positioning its platform as a core operational foundation for large-scale engineering organizations.
