Factory Raises $150M at $1.5B Valuation for Multi-Model AI Coding Agents — Khosla Leads, Customers Include Morgan Stanley

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Three-year-old AI coding startup Factory raised $150M led by Khosla Ventures (Keith Rabois joining board), with Sequoia, Insight Partners, and Blackstone. The key differentiator: Factory's agents switch between foundation models (Claude, DeepSeek, etc.) based on task complexity. Customers include Morgan Stanley, EY, and Palo Alto Networks. Founded by a UC Berkeley PhD student who cold-emailed Sequoia — now a unicorn in the crowded AI coding space alongside Cursor, Windsurf, and Devin.