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Factory's Matan Grinberg: The Coming ‘Dark Factory’ Where Software Builds Itself

21 Jul 2026 · 52 min

Factory started building fully autonomous coding agents in April 2023, two years before enterprises were ready. Matan Grinberg now says this is indistinguishable from being wrong. The Factory co-founder and CEO explains how the company survived its "journey in the desert," including the decision to hand nearly all of its revenue back to customers when the product wasn't making developers obsessed. Matan makes the contrarian technical case that a model-agnostic harness beats the model-and-harness co-design that labs like OpenAI and Anthropic favor, because exposing a harness to many models keeps it from overfitting to any single one. He argues open-weight models like GLM will capture the majority of tokens by staying one generation behind the frontier at a fraction of the cost, and that CIOs will soon justify every incremental token the way they justify headcount. Looking ahead, he predicts 90% of coding tokens will run asynchronously—the "dark factory" where software builds itself.

Hosted by Sonya Huang and Pat Grady, Sequoia Capital