Factory Raises $200M on Question of How Far AI Can Write Software for People

Startup Factory (The San Francisco AI Factory) announced on September 15, 2026 that it raised $200M from Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, NEA and Sound Ventures. Its valuation rose from $1.5B in April to $5B, with total funding exceeding $400M. Factory sells a system in which AI agents write software for companies.

• $200M round; valuation rose from $1.5B to $5B in five months
• Over $400M raised total; investors include Sequoia and Khosla Ventures
• Customers include Nvidia, Adobe, T-Mobile, Royal Bank of Canada and Palo Alto Networks
• System includes Droid Shield 2.0 to find secret leaks in code