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Khosla Ventures

Factory raised $150 million in a Series B at a $1.5 billion valuation for its AI agents that generate code by dynamically switching among multiple foundation models for enterprise engineering teams. Khosla Ventures led the round with Sequoia Capital, Insight Partners and Blackstone, and Keith Rabois of Khosla Ventures joined the company’s board. ##Founders Using Multi-Model Code Generation## Founded in 2023 after Matan Grinberg left a PhD program at UC Berkeley, the startup develops AI agents that switch among foundation models such as Anthropic’s Claude and DeepSeek for code generation. Customers include Morgan Stanley, Ernst & Young and Palo Alto Networks. The prior seed round was backed by Sequoia. ##Model-Agnostic Platform Against Cursor## Factory’s model-agnostic architecture enables dynamic switching among foundation models, differing from single-model tools. The $150 million funding and $1.5 billion valuation exceed typical Series B ranges for AI developer tools, highlighting enterprise adoption momentum. ##Funding Use: Integrations and Sales Scale## The capital will expand platform capabilities, add more enterprise integrations and scale its sales effort. Keith Rabois joining the board provides governance oversight for growth in markets served by Morgan Stanley, Ernst & Young and Palo Alto Networks. ##Post-Money Valuation Versus Competitors## Factory joins a competitive field where incumbents hold strong positions, yet its multi-model approach addresses enterprise needs for flexibility. The new capital positions the startup to scale engineering productivity across large corporates with proven demand from named customers. Factory will deploy the funds to scale engineering and sales, targeting sustained enterprise adoption in AI infrastructure.

Factory Hits $1.5B Valuation on $150M Series B: Model-Agnostic AI Coding

mouhcineessadiki@gmail.com02 mins

Factory raised $150 million in a Series B at a $1.5 billion valuation for its AI agents that generate code by dynamically switching among multiple foundation models for enterprise engineering teams. Khosla Ventures led the round with Sequoia Capital, Insight Partners and Blackstone, and Keith Rabois of Khosla Ventures joined the company’s board. Founders Using…

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