Factory, whose AI coding agents, called Droids, switch between models depending on a task's complexity, raised $200M at a $5B valuation, up from $1.5B in April (Angel Au-Yeung/Wall Street Journal)

Factory, a company utilizing AI coding agents called Droids that adapt models based on task complexity, has successfully raised $200M. This funding round values the company at $5B, a significant increase from its $1.5B valuation in April. Prominent investors, including Khosla Ventures, Blackstone, and Marc Benioff, participated in this $200 million investment into the startup.

This report highlights Factory's valuation jump from $1.5B to $5B since April, unlike many startups facing a tougher funding environment.