AI startup Factory secured new funding to expand its self-improving software development tools for the enterprise. The $200 million financing round, backed by investors including Blackstone, Khosla Ventures, and Sequoia, brings the company's total funding to over $400 million. This latest raise places the company at a $5 billion valuation, a more than three fold increase from the $1.5 billion it recorded in April.

Hundreds of thousands of developers at Nvidia, Adobe, RBC, T-Mobile, and Palo Alto Networks currently use the platform to create software factories. Factory will use the capital to increase spending on research and product development and to accelerate its global go-to-market strategy.