Factory, an artificial intelligence startup focused on enterprise coding solutions, has raised $150 million in new funding, valuing the three-year-old company at $1.5 billion. The funding round was led by Khosla Ventures.

The San Francisco-based company develops AI-powered tools designed to assist enterprises with software development and coding tasks. Factory's platform aims to automate portions of the software development process for large organizations.

The significant valuation reflects continued investor interest in AI companies that target enterprise markets. Factory joins a growing number of AI startups that have achieved billion-dollar valuations as businesses increasingly seek to integrate artificial intelligence into their operations.

Khosla Ventures, known for its investments in technology and AI companies, led the funding round. The venture capital firm has previously backed numerous artificial intelligence and enterprise software companies.

Factory's rapid growth to a $1.5 billion valuation in just three years demonstrates the accelerating pace of AI startup development. The company's focus on enterprise coding tools positions it within the broader trend of businesses adopting AI to enhance productivity and streamline technical operations.