Blackstone is reportedly considering a new funding injection for the artificial intelligence firm Factory. This potential deal is likely to value the San Francisco-based start-up at more than $3.5bn, according to sources.
Factory, which is also backed by Nvidia, creates AI-driven 'droids' designed to automate software coding for various companies, including Morgan Stanley and EY. This would mark the company's third funding round since September, when it was valued at $300m.
Blackstone previously invested in Factory's Series C round in April, at which point the company was valued at $1.5bn. The investment giant has been increasing its focus on the AI sector, with its operating chief Rodney Zemmel identifying companies using AI agents for corporate automation as a key area.
Founded in 2023 by Matan Grinberg and Eno Reyes, Factory has been expanding internationally, opening offices in London in March and later in Sydney. Grinberg stated after the April deal that "anything that can be done on a computer, can be done with a Droid," and that the company doubled its revenue monthly in the six months to April.