Factory AI

Factory is an agent-native software development platform built around Droid, its coding agent, which runs in the Factory App on the desktop, in the Droid CLI and through the Droid SDK. Founded in 2023 by Matan Grinberg and Eno Reyes, Factory raised $200M at a $5B valuation in September 2026 from Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC and Clearlake, bringing its total funding to over $400 million. Factory says it is used by hundreds of thousands of developers and names Nvidia, Blackstone, Royal Bank of Canada, Palo Alto Networks, Adobe and T-Mobile as customers building on it. Around Droid, Factory now sells a wider set of tools it calls a software factory. Mission Control tracks long-running Missions and their execution logs, Automations put recurring engineering work on a schedule, Code Review comments on every pull request, AutoWiki keeps a living wiki for each repository, and Agent Readiness scores how ready each repository is for agents. Model routing sends each task to a model chosen for quality, speed and cost, and Factory supports frontier and open-weight models including GPT-5, Claude Opus and Sonnet, and Gemini. Droid connects out to external tools and MCP servers rather than publishing an MCP server of its own. Pricing is published in USD and billed monthly. Pro is $20 a month for one developer and covers the Factory App, Droid CLI and Droid SDK with cloud and local background agents. Plus is $100 with about five times the usage of Pro and Factory-managed Droid Computers for remote runs. Max is $200 with about ten times the usage of Pro and early feature access. Teams is $60 a month per team plus $40 per seat, for up to 10 seats with shared billing. Business is quoted and adds SSO, SAML and SCIM provisioning, Zero Data Retention, audit logging and admin controls, and Enterprise adds unlimited members, dedicated compute, on-premise deployment options and data residency. What the entry price does not buy: there is no free plan, and every individual plan is metered by rolling Rate Limits over 5-hour, 7-day and 30-day windows. Standard Usage is consumed first. After it runs out, Droid Core offers a pool of open-weight models with its own limits at no extra cost, and Extra Usage sells prepaid credits from a $10 minimum that do not expire. Missions require Extra Usage to be switched on and pause if they hit a Rate Limit. Bring-your-own-key usage is free up to an allowance and charged after that. Factory offers three deployment models. Factory Managed hosts the control plane while Droids run on developer machines, CI/CD, customer environments or Droid Computers. Factory Private, in private preview, puts the control plane and sensitive data in the customer's VPC or on-premises, with air-gapped configurations available. Factory FedRAMP hosts the control plane in GovCloud for public-sector teams, and its authorization is in progress. Factory's trust center lists SOC 2 Type 2 and Type 1 reports, ISO 27001:2022 and ISO 42001 certificates and CCPA compliance, and states that customer data and IP will not be used to train Factory's models or its providers' models. A BAA is offered for healthcare organizations. Factory suits engineering organizations that want governed, auditable agents across the development lifecycle and deployment options that reach into their own infrastructure. Teams that want a hosted autonomous engineer can compare Devin at $20/mo. Developers who prefer a terminal-first agent can look at Claude Code at $17/mo billed annually, and teams already buying through GitHub can look at GitHub Copilot at $10/mo. Current state Q4 2026: Factory moved its website from factory.ai to factory.com and raised $200M at a $5B valuation on September 15, 2026. In September it introduced Factory Private, reported that sessions using Factory Router cost 63 percent less in aggregate than the same workload at published model prices, made Automations generally available, added a Teams plan, and joined both the Claude Marketplace and the OpenAI B2B marketplace, so eligible customers can apply Anthropic or OpenAI spend commitments to Factory. Factory expanded to Japan in August 2026. Its trust center lists Databricks, Snowflake, Mistral and Together as new AI model processing subprocessors added between July and October 2026.