Factory Private Runs Autonomous Coding Agents On-Prem

AI startup Factory, founded in 2023 by Matan Grinberg and Eno Reyes, has introduced Factory Private. This new deployment tier allows organizations to run the company's autonomous coding agents, known as Droids, alongside their control planes within their own virtual private clouds, on-premises data centers, or air-gapped networks. The release targets highly regulated sectors like banking, defense, and healthcare, where strict data residency rules and intellectual property concerns make cloud-hosted coding assistants unusable.

With this release, Factory now offers three distinct tiers: Factory Managed, Factory Private, and Factory FedRAMP, which is currently awaiting federal authorization. To demonstrate the utility of the private setup, the company revealed that Nvidia's Nemotron research team utilized Factory Private within its own on-premises infrastructure. The team used the platform to perform post-training evaluation and optimization for the Nemotron 3 Ultra model, keeping all code, weights, and evaluation traces secure.

Factory's Droids automate software development tasks, codebase research, documentation, and incident response. They can review repositories, modify code, and generate pull requests. In one specific customer migration project, Factory claims its agents compressed a timeline estimated at four months down to just 3.5 days. The platform remains model-agnostic, allowing developers to route their Droids to commercial, open-weight, or custom internal models through their own secure inference gateways.

For enterprise software engineers and security administrators, this development resolves the tension between adopting cutting-edge generative AI and maintaining strict data compliance. Instead of sending sensitive source code to external servers, teams at companies like MongoDB, Ernst & Young, Zapier, and Bayer can now deploy autonomous agents locally. This positions Factory to compete directly with tools like Cursor, Cognition's Devin, GitHub Copilot, and Anthropic's Claude Code on the basis of deployment flexibility and security control.