Factory, a startup that develops AI agents to complete software engineering tasks, has raised $200 million at a $5 billion valuation, more than triple its $1.5 billion valuation in April.

Blackstone, Khosla Ventures, Sequoia Capital, Insight Partners, Evantic Capital, Sound Ventures, NEA, Mantis VC and Clearlake participated in the round, Factory said Tuesday. It did not identify a lead investor.

Factory raised $150 million Series C in April, with the latest round bringing its total funding to more than $400 million. The startup said it will use the new capital to expand its research, products and international sales operations.

Building AI agents for software development

Founded in 2023 by Matan Grinberg and Eno Reyes, Factory develops AI agents that help companies write, test, review and maintain software. Its longer-term goal is to create systems in which software can build and improve itself, the startup said.

Factory said its platform can handle the full software development process and that companies can choose which AI models to use, how the system learns and where it runs.

Factory further said it supports cloud and on-premises installations, as well as "air-gapped environments" that are kept disconnected from the public internet for security reasons.

The startup says hundreds of thousands of developers use its platform. Customers include Nvidia, Blackstone, Royal Bank of Canada, Palo Alto Networks, Adobe and T-Mobile.

Factory introduced an expanded version of its platform, Factory 2.0, in April. The update moved the product beyond individual coding agents toward a broader system that can handle work across different stages of software development.

It has also launched Factory Router, which automatically selects an AI model for each task. Factory said the tool can reduce AI model costs by more than 60%. Another product, Agent Effectiveness, helps companies see what AI agents are doing and whether the money spent on them is giving results, Factory said.

Factory further said it has also expanded its platform for government customers and regulated industries that need private and secure systems.

"We believe the future of software is autonomous and self improving, and we are building it," said Grinberg and Reyes.

The funding comes as investors continue putting large amounts into AI startups. Last week, Factory rival Cognition AI, the developer of coding agent Devin, raised over $2 billion in a Series E funding round at a $48 billion valuation.