Factory AI’s chief executive Matan Grinberg posted on X that the company had terminated board adviser Chris Degnan after learning Degnan held “recurring conversations” with Cognition executives while advising Factory on confidential matters. Grinberg said Degnan “confided with executives of our largest competitor” and alleged that Cognition employees posed as job candidates to gather internal information.
Degnan, a former Snowflake chief revenue officer, responded on X and LinkedIn that he had resigned from Factory and informed Grinberg of his decision to join Cognition as chief revenue officer. He denied any wrongdoing, stating Cognition never asked for Factory information and that he would not share confidential data.
Cognition CEO Scott Wu countered Grinberg’s claims in a separate X post, saying, “We would never ask our engineers or anyone on our team to collect info about any competitor under-the-table.” Wu rejected the allegation that Cognition employees had posed as interviewees to obtain Factory’s product details.
Venture investor Vinod Khosla, whose firm backs both companies, entered the debate, calling Factory a “struggling second tier competitor” and accusing its founder of lying out of “desperation.” Keith Rabois, also of Khosla Ventures, sided with Factory, calling it “absolutely insane” for an adviser to interview a competitor while retaining board access.
The clash follows recent funding rounds: Factory raised $200 million at a $5 billion valuation, while Cognition secured more than $2 billion at a $48 billion valuation. Both firms compete in the AI‑driven software‑engineering market.
Sources
- Business Insider: A feud between AI companies is getting nasty — and very public
- Business Insider: The startup world is mad at Vinod Khosla trashing a portfolio company
- Yahoo Finance: Factory CEO just accused his VC board adviser of spying for Cognition
Fan coverage from Devin Central — not an official Cognition announcement. Devin is a trademark of Cognition.