Blackstone nears $3.5bn deal to back AI firm Factory

The artificial intelligence sector is witnessing significant investment activity, with two prominent AI-focused companies reportedly nearing substantial funding rounds. Blackstone is reportedly close to leading a funding round for AI firm Factory, which specializes in developing AI-driven 'droids' designed to automate software coding for major clients. This deal is expected to value Factory at over $3.5 billion.

In parallel, cybersecurity startup Horizon3 has successfully secured $250 million in Series E funding. The company achieved a valuation of $2 billion in this round, marking a significant increase that more than triples its worth within the last 14 months. This substantial investment is attributed to the escalating landscape of AI-driven cyber threats, which in turn is boosting enterprise demand for continuous, automated penetration testing solutions.

The surge in funding for AI companies reflects a broader trend of increased capital flowing into the technology sector, particularly in areas perceived to offer high growth potential and address critical market needs. Factory's focus on automating software development through AI and Horizon3's response to AI-powered cybersecurity threats highlight two distinct but interconnected facets of the AI revolution.