Factory AI, the San Francisco-based startup building autonomous AI agents for software development, has closed a $150 million Series C round. The deal values the three-year-old company at $1.5 billion.
Khosla Ventures led the round, with Keith Rabois joining Factory AI’s board as part of the deal. Sequoia Capital, Blackstone, Insight Partners, and NEA all participated.
Total funding for Factory AI now sits at roughly $220 million. For a company founded in April 2023, that’s a remarkably steep trajectory.
What Factory AI actually builds
The company builds what it calls “Droids,” autonomous AI agents designed to handle tasks across the full software development lifecycle. These aren’t just tools that suggest the next line of code. They’re meant to take on entire workflows, from writing and reviewing code to handling migrations and incident response, operating within major cloud environments like AWS, Azure, and GCP.
