Factory CEO Matan Grinberg has accused board observer and adviser Chris Degnan of improper conduct involving Cognition, a rival in AI coding agents. Degnan says he resigned from Factory before joining Cognition as chief revenue officer. He denies sharing Factory information, and Cognition CEO Scott Wu says his company neither received it nor sought it.
The public record establishes a dispute, not a leak. Grinberg’s account raises a serious question about access to confidential plans during a job move between competitors. The parties disagree about when Degnan spoke with Cognition, what Factory knew and whether he was fired or resigned. No publicly disclosed evidence independently resolves those questions.
Grinberg Says Recurring Talks Changed His View
In a September 30 post, Grinberg said Degnan had served Factory for more than a year as a board observer and adviser. According to Grinberg, Degnan initially described a conversation with a Cognition executive as casual and isolated, then told him on Monday that the discussions had been formal and recurring.
Grinberg said Degnan had advised Factory staff on confidential board-level matters that Monday. He also alleged that Degnan had been talking with Cognition executives while retaining access to Factory’s leadership and board discussions. Grinberg wrote that he decided the following day to terminate Degnan’s Factory roles.
Having access to confidential information does not establish that Degnan disclosed it. Grinberg said Degnan was subject to confidentiality obligations and questioned whether his interest in Factory’s product roadmap looked different in light of the Cognition talks. He also wrote, “We do not know the extent of the information he shared.” His post did not publish a message, document or other evidence showing that Degnan passed confidential material to Cognition.
Grinberg separately alleged that Cognition engineers had posed as job candidates to obtain information about Factory’s product. That claim has not been independently established in the cited public reporting either. It should not be treated as corroboration for the accusation about Degnan.
Degnan Disputes Both the Firing and the Board Timeline
Degnan’s account conflicts with Grinberg’s on two central points. He says he resigned from his Factory adviser position on Monday and told Grinberg he was going to Cognition. Degnan says Grinberg then asked him to consider a full-time Factory role, which he declined, rather than firing him.
He also disputes the suggestion that he attended a Factory board meeting after beginning talks with Cognition. Degnan says the last board meeting he attended took place weeks before he first spoke with the rival. He denies giving Cognition Factory information and says Cognition never asked for it.
