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Back to ⚡️ The 2026 Software Factory Standard — Zach Lloyd, Warp.dev, with Zach Lloyd.

What Is a Software Factory?

Zach Lloyd defines a software factory as an agentic system in the cloud where a team defines the roles of various agents across building software for the team or for the product. The agents have a certain amount of autonomy and can do things on their own. The system should be very measurable and very closed loop. Over time the team can tune, measure, and benchmark it, and get confidence that people switching to agentic development are doing it in the most scalable and efficient way.

When he talks to companies or developers, most of the world is trying to build some sort of internal software factory or a set of software factories. People trying to build their own often start by stringing together different automations. Sometimes they conceive of a software factory as not a specific thing. They are using agents a lot to ship software and calling it their internal software factory.

Transcript

⚡️ The 2026 Software Factory Standard — Zach Lloyd, Warp.dev ·

Latent Space: The AI Engineer Podcast

More from this episode

  1. How Does Warp's Software Factory Improve Itself?Zach Lloyd says Warp's software factory can improve itself because the factory is defined as code.
  2. What Is Factory Engineering at Warp?Zach Lloyd says factory engineering means replaying a company's real tasks across models and harnesses so the team can see cost against correctness, and the…
  3. What Did Warp First Pay Per Pull Request?Zach Lloyd says the factory approach at Warp first cost about 80 dollars per pull request. The team was using Opus on work that did not need it.
  4. When Does a Software Factory Make Sense?Zach Lloyd says a software factory starts to make sense around five to 10 engineers.
  5. Why Does Warp Stay Out of Token Reselling?Zach Lloyd says paying by the API is 5 to 50 times more expensive than buying a pile of subscriptions.

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