Factoryan AI infrastructure startup, raised $150 million at a $1.5 billion valuation in a Series C funding round led by Khosla Ventures; This underlined investors’ continued appetite for enterprise AI platforms that promise to further automate the software development process.
The round also received support from Sequoia Capital, Insight Partners, Blackstone, Evantic Capital, Abstract Ventures, 20VC, NEA and Mantis VC.
Founded in 2023 Matan Grinberg And Eno ReyesFactory has created artificial intelligence agents it calls “Droids” that are designed to do more than generate code.
The platform also handles testing, code review, documentation and deployment, positioning the company as a broader orchestration layer for software development teams rather than a standalone coding assistant.
Factory says the effectiveness of AI agents depends not only on the models that support them, but also on the underlying infrastructure that supports enterprise software environments.
This includes documentation, test coverage, CI/CD pipelines, and integrations with internal tools.
The company describes this approach as “paving the roads” and argues that businesses need foundational systems that allow autonomous agents to operate reliably at scale.
One of Factory’s key selling points is its model-independent setup.
The platform can switch between Anthropic’s core models, such as Claude and DeepSeek, providing enterprise users with flexibility as companies weigh performance, cost, and control across different AI systems.
While competitors like Cursor also support multiple models, Factory believes businesses want more comprehensive coordination across their technology stacks.
The startup says its tools are already used daily by hundreds of thousands of developers at organizations like Nvidia, Adobe, EY, Palo Alto Networks, Adyen, MongoDB, Bayer, and Zapier, pointing to growing demand for AI-driven productivity tools in large enterprises.
The factory said its revenue has doubled every month for the past six months.
The new capital will be used to fund research, product development and international expansion as competition intensifies in the fast-growing AI infrastructure market.
