Factory Raises $200M, Valued at $3.5B

AI startup Factory has raised $200 million in funding backed by Blackstone, Khosla Ventures, Sequoia Capital, and NEA, among others, with angel investors including Marc Benioff. The round values the company at $3.5 billion, up from its April valuation. Factory's platform automates complex software development tasks using AI agents, assigning work to the most cost-efficient language models while handling infrastructure, security checks, and documentation automatically. The platform is used by hundreds of thousands of developers, including staff at Nvidia, Adobe, and Palo Alto Networks. Factory plans to grow its headcount to 300 employees by year-end.