Factory CEO Accuses Cognition of Industrial Espionage via Board Adviser in $50B Startup Clash

San Francisco AI startups Factory and Cognition descended into a public boardroom feud after Factory terminated Chris Degnan, a key adviser and board observer, accusing him of undisclosed involvement with the larger rival while handling confidential strategic information. Degnan, who advised Factory over the course of approximately one year, was subsequently named chief revenue officer at Cognition—a significantly larger competitor—prompting Factory co-founder and CEO Matan Grinberg to publicly allege that Degnan had misrepresented his relationship with Cognition while attending board meetings and accessing sensitive roadmap details.