Factory AI

Factory AI is the agent-native software development platform built around Droids: autonomous AI agents that operate across desktop, CLI, and SDK environments to handle multi-step development tasks. Founded in 2023 by Matan Grinberg and Eno Reyes, Factory has raised $220 million across five funding rounds, reaching a $1.5 billion valuation after a $150 million Series C led by Khosla Ventures in April 2026 with participation from Sequoia Capital, Insight Partners, Blackstone, NEA, and Mantis VC. Droids are used daily by hundreds of thousands of developers across enterprises including Nvidia, Adobe, EY, Palo Alto Networks, Adyen, Morgan Stanley, MongoDB, Bayer, and Zapier. Factory has doubled revenue month over month for six consecutive months. Droids reached the number one position on Terminal Bench, confirming autonomous task execution quality against competing agents. The multi-surface Droid architecture exposes agents as discrete entities invokable from desktop apps, CLI commands, and SDK integrations rather than treating AI agents as features within a single IDE. Droid Computers on Plus and Max tiers provide Factory-managed cloud sandboxes where Droids run autonomous tasks without consuming local compute or affecting the developer's active workspace. The SDK enables teams to embed Droids programmatically into their own tooling and CI/CD pipelines. Integration depth spans the full developer workflow: GitHub and GitLab for version control and PR creation, Jira and Linear for issue tracking, Slack for notifications and task assignment, VS Code for IDE access, and MCP for connecting external tools and data sources. Enterprise deployment options include on-premise with encryption keys, data residency controls, network policy, and audit logging. Zero Data Retention is available on Teams and Enterprise tiers. Pricing is tiered with monthly billing across five plans. Pro at $20/month covers complete software development agents for individuals with the agent-native multi-platform experience (Desktop, CLI, SDK), cloud and local background agents, billing and usage tracking, and the agent-readiness dashboard. Plus at $100/month adds approximately 5x the usage of Pro and Droid Computers for remote workloads. Max at $200/month adds approximately 10x the usage of Pro plus early access to new features. Teams is custom-priced for up to 150 seats with SSO, SAML/SCIM provisioning, Zero Data Retention, and basic admin controls. Enterprise adds unlimited team members, dedicated compute with partitioned inference pool, audit logging, on-premise deployment, and full admin controls. Factory is not the right fit for teams that need a free evaluation tier before committing. Cursor ($0 free tier) and Claude Code (included in Claude Pro) both allow evaluation at no cost. No free Factory tier currently exists, requiring Pro at $20/month as the minimum entry point. Teams already committed to Cursor or Devin Desktop may find insufficient differentiation to justify switching unless the multi-surface SDK architecture or Droid Computers cloud sandboxes address a specific workflow gap. Current state Q2 2026: Factory closed its $150M Series C at a $1.5B valuation in April 2026. The product positioning has evolved from individual Droids to a full Software Factory concept: a self-improving SDLC system that automates the entire pipeline from signal triage through code generation, validation, release, documentation, and monitoring. Droids hold the number one position on Terminal Bench. The Desktop App launched in April 2026 as the latest product surface. Factory for Science launched as a separate initiative. Factory explicitly commits to not using customer code as training data and offers a BAA for healthcare organizations. The platform operates under SOC 2 Type II compliance. Revenue has doubled month over month for six consecutive months with hundreds of thousands of daily active developers across major enterprise customers.

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