Factory Raises $200M at $5B Valuation

Factory, an AI software-development company founded in 2023, has raised $200 million at a $5 billion valuation, up from $1.5 billion in April and bringing its total funding above $400 million. Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners and other investors participated, along with angel investors including Marc Benioff, Brad Gerstner and Nico Rosberg. Factory’s platform uses AI agents across the software-development lifecycle, including coding, testing, code review, security analysis, deployment and maintenance, rather than focusing only on individual coding tasks. The company says its system serves customers including Nvidia, Adobe, Palo Alto Networks and Blackstone and can be deployed through the cloud, on-premises or in air-gapped environments. The financing reflects intensifying investor interest in AI coding companies as enterprises explore using increasingly autonomous agents to manage broader engineering workflows.