Factory raises $200 million to triple AI coding valuation to $5 billion

Factory, a San Francisco startup building AI agents for enterprise software engineering teams, said on Sept. 15, 2026 it raised $200 million, boosting its valuation to $5 billion. The round, backed by Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital and Sound Ventures, more than tripled Factory’s valuation from April.