Factory Raises $150M at $1.5B Valuation to Scale AI Coding Agents for Enterprises

Factory has secured $150 million in funding at a $1.5 billion valuation to expand its AI-driven coding platform for enterprise engineering teams. The round was led by Khosla Ventures, with participation from Sequoia Capital, Insight Partners, and Blackstone. Keith Rabois has joined the company’s board.

Founded in 2023 by Matan Grinberg, the company develops AI agents designed to support software development workflows. Grinberg indicated the platform differentiates itself by enabling flexibility across multiple foundation models, including systems from Anthropic and DeepSeek.

Factory is already working with enterprise customers such as Morgan Stanley, Ernst & Young, and Palo Alto Networks, reflecting strong demand for AI-assisted coding solutions in large organisations.

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