BLACKSTONE WEIGHS FUNDING FOR AI CODING FIRM FACTORY

Blackstone is considering a fresh funding investment in Factory, an artificial intelligence company that automates software coding, according to sources. The deal would value Factory at more than $3.5bn, marking the third funding round for the San Francisco-based start-up since September. Factory's clients include Morgan Stanley, EY and Nvidia, which is also an investor in the company. Blackstone and Factory declined to comment on the reported investment.

Factory was valued at $300m in a $50m funding round in September, backed by investors including Nvidia and JP Morgan. Blackstone invested in the company's Series C round in April at a valuation of $1.5bn, alongside Sequoia Capital, Khosla Ventures and 20VC. Factory was founded in 2023 by former Princeton students Matan Grinberg and Eno Reyes. The company has expanded internationally, opening an office in London in March and subsequently establishing operations in Sydney.

The reported investment reflects Blackstone's stated focus on artificial intelligence companies and digital infrastructure. Blackstone's operating chief Rodney Zemmel identified companies using AI agents for corporate automation as a key investment area in May. Blackstone has committed substantial capital to data centre infrastructure in recent months, announcing plans to invest $30bn in Japanese data centres and $5bn in a new data infrastructure company with Google.