Two billion-level AI startups accuse each other due to board changes
2026-10-01 05:14:07
According to CoinMeta, due to the resignation of a board member, billion-dollar AI startups Factory AI and Cognition are blaming each other. Factory AI accuses its former consultant of having secret meetings with competitor Cognition during their tenure as a consultant, and claims that Cognition employees pretended to be job seekers in order to obtain product information. Cognition's CEO Scott Wu denied these accusations, stating that the company has never requested employees to secretly collect information on competitors. This incident highlights the fierce competition in the AI coding market; both parties have recently announced significant financings: Factory AI completed a $200 million financing round with a valuation of $5 billion, while Cognition raised over $2 billion just a few days ago, with a valuation of $48 billion.
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Source:Business Insider
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