We are joined by Eno Reyes and Matan Grinberg, the co-founders of Factory.ai. They are building droids for autonomous software engineering, handling everything from code generation to incident response for production outages. After raising a $15M Series A from Sequoia, they just released their product in GA!

https://factory.ai/

https://x.com/latentspacepod

Chapters

• 00:00:00 Introductions
• 00:00:35 Meeting at Langchain Hackathon
• 00:04:02 Building Factory despite early model limitations
• 00:06:56 What is Factory AI?
• 00:08:55 Delegation vs Collaboration in AI Development Tools
• 00:10:06 Naming Origins of 'Factory' and 'Droids'
• 00:12:17 Defining Droids: Agent vs Workflow
• 00:14:34 Live Demo
• 00:17:37 Enterprise Context and Tool Integration in Droids
• 00:20:26 Prompting, Clarification, and Agent Communication
• 00:22:28 Project Understanding and Proactive Context Gathering
• 00:24:10 Why SWE-Bench Is Dead
• 00:28:47 Model Fine-tuning and Generalization Challenges
• 00:31:07 Why Factory is Browser-Based, Not IDE-Based
• 00:33:51 Test-Driven Development and Agent Verification
• 00:36:17 Retrieval vs Large Context Windows for Cost Efficiency
• 00:38:02 Enterprise Metrics: Code Churn and ROI
• 00:40:48 Executing Large Refactors and Migrations with Droids
• 00:45:25 Model Speed, Parallelism, and Delegation Bottlenecks
• 00:50:11 Observability Challenges and Semantic Telemetry
• 00:53:44 Hiring
• 00:55:19 Factory's design and branding approach
• 00:58:34 Closing Thoughts and Future of AI-Native Development