Factory and Cognition clash over adviser’s move

Two rivals building AI agents that can handle software-development work are publicly fighting over Chris Degnan, a former Factory board adviser who announced he will join Cognition as chief revenue officer. Factory CEO Matan Grinberg said Degnan held discussions with Cognition while attending Factory board meetings and alleged that confidential information could have been at risk. Degnan says he resigned before Factory ended the relationship and denies sharing any information; Cognition also says it neither sought nor received Factory’s secrets. The dispute became more awkward when Vinod Khosla, whose venture firm has invested in both companies, publicly sided against Factory—showing how quickly a senior hire can expose questions of trust, confidentiality, and investor conflicts between closely matched AI startups.