AI coding-agent startup Factory raised $200 million at a $5 billion valuation, more than triple its April mark, with backers including Blackstone, Khosla Ventures, Sequoia Capital, and Insight Partners.
Factory, a San Francisco startup building AI agents for enterprise engineering teams, said Tuesday it raised $200 million in a round that more than tripled its valuation to $5 billion, Reuters reported. Backers include Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, and Sound Ventures, among others.
Founded in 2023 by Matan Grinberg and Eno Reyes, Factory offers a platform for enterprises to use AI agents to build, test, and maintain software. Reuters places it in the same competitive set as AI coding platforms such as Cognition and Cursor. Cognition raised $2 billion at a $48 billion valuation earlier this month, Reuters noted. Factory raised $150 million at a $1.5 billion valuation in April.
“Across the world’s largest enterprises, we are seeing a move from individual coding agents to software factories that serve as the core foundation from which an entire software company operates,” Grinberg, co-founder and CEO, said, according to Reuters.
AI-assisted coding remains one of the most widely adopted generative AI uses, drawing heavy investor interest as companies try to speed software development. Reuters tied the raise to a broader enterprise push to reshape engineering work around AI productivity tools.
This brief covers Factory’s announced round and valuation as reported. Competitor comparisons are category context only.