Factory raises $200M at $5B valuation as AI coding agents draw big money
Factory just closed a $200 million round at a $5 billion valuation, up from $1.5 billion in April. That is more than a 3x step-up in under six months.
The investors include Khosla Ventures, Blackstone, and Marc Benioff. Factory builds AI coding agents it calls Droids. The defining feature: Droids switch between models depending on the complexity of the task at hand, rather than routing everything through a single model.
For context on the speed of this market, Factory’s valuation has more than tripled in the same window that most SaaS companies are struggling to hold their multiples. The AI coding agent space is attracting serious institutional capital fast.
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