Competing AI Coding Agents Face Off as Investor Conflicts Highlight Silicon Valley's Overlapping Networks

Cognition and Factory, two fast-growing artificial intelligence startups racing to automate software development, have become embroiled in a public dispute that exposes the tangled web of Silicon Valley investment networks. The clash centers on Chris Degnan, a veteran sales executive with deep experience at Snowflake, who until recently advised Factory as a board observer and investor through his firm RPT Partners. On September 30, 2026, Factory CEO Matan Grinberg publicly accused Degnan of unethical conduct, alleging that Cognition engineers "feigned interviews" with Factory staff to gather competitive intelligence and that Degnan had shared confidential board-level information while simultaneously negotiating his move to Cognition as chief revenue officer. Degnan disputed the claims, stating he had resigned voluntarily and denying any improper information sharing. Cognition CEO Scott Wu rejected Factory's allegations entirely, asserting that Degnan "has not shared and would never share any information" and that the company never sought Factory's confidential data.