Factory AI vs Cognition: What sparked the public fight between the AI startups?

Factory AI and Cognition are trading public accusations following Chris Degnan’s move to Cognition as chief revenue officer. The dispute centres on boardroom access, confidential information and conflicting accounts of Degnan’s departure.

Factory AI and Cognition, two fast-growing makers of AI coding agents, are locked in a public dispute over Chris Degnan, a former Factory adviser who has joined Cognition as chief revenue officer. The argument has moved from private boardroom conversations to X, drawing investors and senior executives into an unusually blunt Silicon Valley fight.

Factory chief executive Matan Grinberg accused Degnan of speaking with Cognition executives during his time as a board observer and adviser. Grinberg said Degnan had access to confidential discussions. Degnan denied sharing information and disputed Factory’s account of how he left.

We are terminating Chris Degnan for unethical conduct........

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