We are terminating Chris Degnan for unethical conduct involving Cognition. The last few months have seen incredible progress in AI capabilities. San Francisco has flourished as new companies that solve new, more ambitious problems are finding great success. Generally, it is a wonderful time to be building. We at @FactoryAI have seen overwhelming interest in our model-agnostic coding agents and our software factory product. Our team has 10x’d in size, while our revenue has 100x’d year over year. This momentum has been unprecedented. A much larger competitor, Cognition (makers of Devin) has fallen behind us on the capabilities that matter most to customers: cost, quality, and security. Instead of competing in the market, Cognition engineers feigned interviews with us to pry information about our product. Not finding what they were looking for, Cognition has decided to throw their weight and money at people with direct knowledge of our most confidential plans. It feels as though ethics is being thrown out of the window in the AI era. People are willing to do anything, including exploiting privileged information and violating ethical boundaries. I think this is unique to our time, and I don’t think it’s right. Integrity still matters. Yesterday, I made the decision to immediately terminate Christopher Degnan’s roles as a Board Observer and Advisor to Factory, after over a year of service. Prior to this decision, Chris told me he had a casual conversation with an executive at Cognition AI. When I questioned his intentions, he reassured me that ethics aside, he had “made too much money” and was “too lazy to go work for Cognition,” which I trusted and believed. On Monday, Chris spent time advising the Factory team on a handful of confidential board-level matters. That evening, he called me to say that the conversation that was initially described as casual and one-off was actually formal and recurring. For weeks, while he sat in our board meetings and advised our leadership team, he was also confiding with executives of our largest competitor. Chris was subject to confidentiality obligations in connection with his work with Factory. We do not know the extent of the information he shared, but it puts his timely questions about our product roadmap and what the parity gap involves into a new light. It is sad to sever a relationship with someone who has been a trusted advisor - and even a close friend - for over a year. But Chris’s conduct is unacceptable to me. Trust in Board Membership is one of the sacred bonds in the Silicon Valley, one that helps the startup ecosystem thrive. With it comes an enormous responsibility. That trust was violated. Competition is good. I respect and in many cases admire our competitors. San Francisco is a beautiful, singular place where the bold and ambitious go to defy the norms and precedents of the past. But certain principles that must remain. Violating ethics to seek advantage turns what should be positive-sum into zero-sum. We all love technology. And we all love to compete. But we must hold ourselves to a higher standard. The future of software engineering comes with abundance that will impact every person on Earth. Building that future comes with immense responsibility. We must build and compete with integrity.

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Cancel culture is alive and well, but, at Corgi, we have thick skin and believe strongly in freedom of expression. For those who don’t know us, Corgi is an increasingly diversified financial institution, best known for our insurance products and generating hundreds of millions of dollars in revenue more quickly than any other financial services company before us. Our approach is simple: find parts of financial services that are slow, expensive, manual, or broken, and use technology to make them faster, better, and cheaper, while protecting people and companies when things go wrong. While it’s easy to focus on our (comparably small, our marketing team is around ~10 people) marketing efforts, the entire team consists of real heroes that have allowed us to scale faster than any other financial services company in history by offering good products that save people money, save them time, and protect them when things go wrong. If I’ve learned one thing about startups, it’s that VCs and very online figures care mostly about press and social media. However, real hackers and builders care about making a durable business, and that’s what we’re doing at Corgi. And to all the people trying constantly to get me to fire our team members for expressing themselves online: it’s not going to happen, and no, there aren’t KPIs tied to social media presence at corgi currently, we just haven’t censored our team historically nor are we going to start now. It’s a great thing that our team consists of culturally important figures who share their opinions, and companies would generally be more ambitious if they did not attempt to censor their team and revert to corporate slop.

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