A boardroom exit has two multibillion-dollar AI startups trading accusations
Source: Business Insider ·
Factory AI alleges a former board member held meetings with rival Cognition while advising the company.
From the source
Cognition CEO Scott WuKent NISHIMURA / AFP via Getty ImagesStartup Factory AI says a former advisor held meetings with rival Cognition while advising the company.Factory also alleges Cognition employees posed as job applicants to seek product information.Degnan, the former board member, and Cognition deny that information about Factory was sought or shared.Factory AI and Cognition, two high-profile San Francisco-based AI startups building coding agents, are publicly feuding over the departure of a former Factory board observer and advisor who is joining Cognition as chief revenue officer.Factory CEO Matan Grinberg posted on X on Wednesday that the company had terminated Chris Degnan's role after learning that he had been holding recurring conversations with Cognition executives while advising Factory on confidential matters.The dispute highlights the high stakes in the AI coding market, where startups and Big Tech are racing to build autonomous software engineers to sell to…