AI agents that ship enterprise software — droids that own the dev lifecycle from ticket to PR
HQ: New York, NY, United States | Founded: 2023 | Employees: 60–100 (est. 2026) | Stage: Series C ($1.5B valuation, Apr 2026) | Website: https://www.factory.ai
Factory AI (Factory) was founded in 2023 in New York by former Princeton students Matan Grinberg (CEO) and Eno Reyes (CTO). Its product is a fleet of AI 'droids' — general agents that connect to GitHub/Linear, understand tickets, plan work, write code, run tests and open PRs, with model-switching logic routing between Claude, GPT, etc. by task complexity. The company raised $5M in Nov 2023 (TechCrunch: 'wants to use AI to automate the software dev lifecycle'), then $50M Series B at $300M led by NEA/Sequoia/J.P. Morgan/Nvidia in Sep 2025 on 200% QoQ growth, then $150M Series C at $1.5B in Apr 2026 led by Khosla Ventures and Sequoia with Lux, Mubadala and others. Factory positions droids as enterprise-grade (SOC 2, self-host) versus consumer code assistants.
Factory's pitch is simple and expensive: 'general AI that builds software' — droids that switch models mid-task based on complexity. Founded 2023 by Princeton dropouts Matan Grinberg and Eno Reyes, it first pitched 'AI to automate the SDLC' on $5M (Nov 2023), hit $50M at $300M in Sep 2025 (NEA/Sequoia/Nvidia) growing 200% QoQ, then jumped to $150M at $1.5B in Apr 2026 led by Khosla/Sequoia with Lux/Mubadala. $220M raised per Tracxn (495 employees listed includes contractors per some sources — team likely far smaller). The race is brutal: Cognition, Cursor, Poolside, Factory and every frontier lab ship 'SWE agents' — Factory's edge is droid generality and enterprise pilots, but Anysphere's edit-surface distribution is the bar it must beat without owning an IDE.
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