Factory, an artificial intelligence infrastructure startup, has raised $150 million in a Series C funding round led by Khosla Ventures at a $1.5 billion valuation, underscoring continued investor appetite for enterprise AI platforms that promise to automate more of the software development process.
The round also drew backing from Sequoia Capital, Insight Partners, Blackstone, Evantic Capital, Abstract Ventures, 20VC, NEA, and Mantis VC.
Founded in 2023 by Matan Grinberg and Eno Reyes, Factory has built AI agents it calls “Droids,” which 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 powering them but also on the underlying infrastructure supporting enterprise software environments.
That includes documentation, test coverage, CI/CD pipelines, and integrations with internal tools.
The company describes this approach as “paving the roads,” arguing that enterprises need the foundational systems that allow autonomous agents to operate reliably at scale.
One of Factory’s key selling points is its model-agnostic setup.
The platform can switch between foundation models such as Anthropic’s Claude and DeepSeek, giving enterprise users flexibility as companies weigh performance, cost, and control across different AI systems.
While rivals including Cursor also support multiple models, Factory is betting that enterprises want more comprehensive coordination across their technology stack.
The startup says its tools are already used daily by hundreds of thousands of developers at organisations including Nvidia, Adobe, EY, Palo Alto Networks, Adyen, MongoDB, Bayer, and Zapier, pointing to growing demand for AI-driven productivity tools in large enterprises.
Factory said its revenue has doubled every month for the past six months.
The fresh capital will be used to fund research, product development, and international expansion as competition intensifies in the fast-growing AI infrastructure market.
