Factory CEO Matan Grinberg says he terminated Chris Degnan, alleging Degnan confided with Cognition execs while advising Factory before joining Cognition as CRO (Rya Jetha/Business Insider)

Factory CEO Matan Grinberg terminated Chris Degnan, alleging Degnan confided with Cognition executives while advising Factory as a board observer. This dispute involves Factory AI and Cognition, two prominent San Francisco-based AI startups that develop coding agents. The public feud centers on Degnan's departure from Factory and his subsequent move to Cognition as their new CRO, raising questions about his conduct during his advisory role.