Start-ups building artificial intelligence-powered coding tools have reaped more than $7.5bn of investment in the past three months, as investors increase their bets that software engineering will be the first “killer application” of the technology.
Venture capitalists Sequoia Capital and NEA, along with Wall Street bank JPMorgan and chipmaker Nvidia, on Thursday invested $50mn into AI coding start-up Factory. The start-up sells AI agents, called “droids”, that handle coding and software development to businesses.
That deal follows massive funding rounds for a trio of San Francisco-based coding start-ups — Cognition AI, Anysphere and Replit — which have raised a combined $1.6bn since June.
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