Factory Raises $150 Million to Expand AI Droids for Enterprise Developers

Factory landed $150 million in new financing at a $1.5 billion valuation, a sign that venture capital is still pouring into AI, but with a sharper focus on software production inside large companies rather than consumer chatbots. The three-year-old startup said the Series C was led by Khosla Ventures, and that Keith Rabois, Khosla’s managing director, joined its board.

The company has built its pitch around “Droids,” AI agents it says are used daily by hundreds of thousands of developers at enterprises including Nvidia, Adobe, EY, Palo Alto Networks, Adyen, MongoDB, Bayer, Zapier, Clari, Bilt, Profound and Rogo. Factory says the system reaches beyond code generation into testing, review, documentation and deployment, aiming to cover the full software development lifecycle rather than a narrow slice of it.

That broader scope is central to the company’s argument that enterprise buyers want measurable productivity gains, not another interface for general-purpose prompting. Factory says its agents are model-agnostic, meaning they can switch among foundation models rather than depending on a single underlying system. That approach puts it in direct competition with AI coding products such as Anthropic’s Claude Code, Cursor, Cognition and GitHub Copilot.

Factory was founded about three years ago by Matan Grinberg, who said the mission has been to bring autonomy to software engineering. The company said revenue has doubled month over month for the past six months, a growth rate that investors are likely weighing heavily as they decide whether the company is building durable enterprise software or simply riding the latest AI coding wave.

Rabois framed the opportunity as one aimed at Fortune 500 companies building for the next two decades of AI transformation, arguing that the real prize is not making an individual developer “25% better at coding.” That message reflects where capital is flowing now: toward tools that can be adopted across engineering organizations, embedded into production workflows and measured against concrete output, not just conversation.