Warp’s new system is an out-of-the-box software factory for AI development


Companies are still grappling with exactly how software development should work in the AI area, but one early answer is the so-called software factory. Essentially an agent loop that’s built around the traditional stages of software development, the software factory approach has become a popular way for companies to remake their engineering organizations for the AI era.

Now, a system from Warp could make that transition a lot easier. On Tuesday, the AI coding company introduced Warp Factories, a new system designed to make building and operating AI software factories as easy as possible.

Operating as an infrastructure layer, Warp Factories gives companies a simple environment for deploying agents and a roadmap for how to use them.

To be clear, many companies are already having success with the factory model without any help from Warp. Stripe has been particularly public about its technical progress, developing a “minions” system to automate development within its own codebase. Ramp has made similar progress, developing a background agent that can monitor its own code after it is deployed.

An analytics screen from Warp FactoriesImage Credits:Warp Factories

As Warp CEO Zach Lloyd sees it, the target market for Warp Factories will be smaller companies without the resources to develop a system from the ground up.

“[If you look at] things like running your agents in the cloud and steering those agents as they run, or bringing the work that they’re doing into your local environment, or setting up memory that goes across those agents, or setting up evals that go across those agents — it’s actually a huge infrastructure undertaking to do this right,” Lloyd told TechCrunch.

In Warp Factories, the architecture is already built out of the box, with many of the most difficult decisions already made. Warp’s system is based on the standard phases of software development (triage, specification, implementation, review, and verification) but the agentic approach means any of those steps can be automated.

Users can choose their own coding model and harnesses as necessary; the system works as well with Codex as Claude Code. It also integrates with ticketing systems like Linear and Jira, and messaging systems like Slack and Teams, in an effort to plug in seamlessly to existing workflows.

Beyond just shipping code, Warp Factories will also give managers the tools to track how well the factory is performing. With all the agents running in the same environment, it’s easy to compare performance metrics for different configurations, and to keep an eye on the overall token spend. Warp Factory also allows for self-improvement loops to optimize the overall system, automating management of the process itself.

Even so, Warp Factories is not built to completely replace software engineers — just give them an easier way to collaborate with the new agentic workforce. In Lloyd’s own experience, there are still a lot of tasks that require a human at the wheel.

“We automate like 30% of our tasks, 30 to 35% on a weekly basis,” Lloyd told TechCrunch, “and as models improve, as the context improves, as the harness improves, I think that that number is going to go up over time.”

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Factory hits $1.5B valuation to build AI coding for enterprises


More than three years after the emergence of generative AI, AI-assisted coding remains by far the most popular and lucrative use case for the technology.

Although multiple companies — including Anthropic, maker of Claude Code, as well as Cursor and Cognition — are already vying for dominance, investors believe there is room for at least one more player.

On Wednesday, Factory, a startup developing AI agents for enterprise engineering teams, announced it had raised $150 million at a $1.5 billion valuation. The round was led by Khosla Ventures, with participation from Sequoia Capital, Insight Partners, and Blackstone. Keith Rabois, a managing director at Khosla Ventures, joined the startup’s board.

Factory founder Matan Grinberg told the Wall Street Journal that the company’s key differentiator is its ability to switch between different foundation models, such as Anthropic’s Claude or Chinese AI startup DeepSeek. However, startups like Cursor also don’t rely on a single model to generate code.

Factory’s customers include engineering teams at Morgan Stanley, Ernst & Young, and Palo Alto Networks.

The startup was founded in 2023 after Grinberg, then a PhD student at UC Berkeley, cold-emailed Sequoia partner Shaun Maguire. The two bonded over mutual academic interest. (Maguire’s PhD from Caltech is in the same area of physics Grinberg was studying.)

Maguire convinced Grinberg to drop out and launch Factory, with Sequoia backing the startup at the seed stage.

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