Factory CEO accuses board adviser of leaking secrets to rival Cognition

Boardroom trust in Silicon Valley just took a very public, messy hit.

Factory CEO Matan Grinberg accused board adviser Chris Degnan of leaking confidential product roadmaps to rival AI startup Cognition, TechCrunch reported. Two hours after Grinberg posted the accusation on X, Degnan announced he had joined Cognition as chief revenue officer. Degnan denies sharing trade secrets, claiming he resigned on Monday and that Grinberg even offered him a full-time job on his way out. The feud quickly split investor Khosla Ventures: founder Vinod Khosla called Factory a "struggling second tier competitor," while partner Keith Rabois defended Factory, calling Degnan's conduct unethical.

Why it matters: Startup founders give board advisers complete visibility into internal plans, sensitive tech, and roadmap gaps. As VCs back multiple competing AI startups at once, board seats are becoming potential espionage hazards.

Know this: Cognition (valued at $48 billion) makes the Devin coding agent, while Factory (valued at $5 billion) builds competing autonomous agents. Cognition CEO Scott Wu weighed in on X to defend his company, stating they have "no interest in Factory's info."

Next time your board adviser asks detailed questions about your product roadmap, check their LinkedIn status first.