Non-EU vendorAI CodingHeadquarters: US

Factory: sovereignty score and 6 European alternatives

Factory is a software development platform built on agents: autonomous agents, called 'Droids', support planning, building, reviewing, testing and shipping software. The company says the platform works with several model providers and persistent Droid environments, with enterprise deployment controls and a programming interface. The service is offered as a hosted solution. The security page states that customer data is kept in a sandboxed single-tenant environment with its own virtual network and is encrypted with AES-256.

Factory is a US company based in San Francisco. It was originally incorporated as the San Francisco Droid Company and later renamed. The website does not name the operating legal entity, the countries or regions where customer data is stored, or the model providers it uses. A European organisation should therefore ask for the contracting entity, the hosting regions, the list of model sub-processors and the data processing agreement, because as a US company Factory is subject to US law. The site does not describe a self-hosted option or open-source components.

See the 6 European alternatives ↓Assess your stack with Factory pre-selected

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Sovereignty score

17 / 1000 = high exposure
100 = sovereign

Jurisdiction SOV-210
Headquartered in the US: CLOUD Act and FISA 702
Data residency SOV-30
No hosting in Europe (US)
Cryptographic key sovereignty SOV-320
Key management with a non-European vendor
Freedom from lock-in SOV-640
Closed source: switching requires data migration
Source & runtime sovereignty SOV-4 · SOV-615
Closed source, runtime with the vendor

SOV codes: the matching objective in the European Commission's Cloud Sovereignty Framework. Official source

How the score is calculated

Facts and evidence

Last checked October 11, 2026

Headquarters	US (US)Verified by hand
EU adequacy decision	Only for companies individually certified under the EU-US Data Privacy FrameworkVerified by hand
Sovereignty model	Vendor-hosted (non-EU)Verified by hand
Data hosting	USVerified by hand
Open-source	NoVerified by hand
GDPR-compliant	NoVendor-stated
Category	AI Coding
Type	Product
Website	factory.com ↗

How we verify · Something wrong? Suggest a correction

Top EU-based & GDPR-compliant alternatives to Factory

The European alternatives to Factory come from our knowledge base of over 6,800 vendors. We only list vendors headquartered in the EU or the EEA; fully European-owned vendors rank before vendors with a foreign owner. For each alternative you see the country, the open-source status and a short description.

Score per alternative: 0 = high exposure, 100 = sovereign

6 European AI Coding vendors are in the catalogue. View the whole category · Submit an alternative · View category on the map

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Why digital sovereignty matters with Factory

Factory is headquartered in the United States. US vendors fall under the CLOUD Act and FISA 702: US authorities can compel access to data, even when that data sits in a European data centre. That is the core of the jurisdictional exposure in our model.

Factory hosts data outside the EU (US). Personal data therefore leaves the EU, which requires a transfer mechanism under the GDPR and pulls the data residency score down.

Factory is closed source and hosted by the vendor. The encryption keys and the runtime sit with the vendor and switching requires data migration. Ask about bring-your-own-key, export options and open standards.

What this means for your organisation depends on your whole stack and context. The free assessment weighs Factory together with your other vendors and gives a total score, a heatmap and the main risk drivers.

Frequently asked questions

What is the best European alternative to Factory?

It depends on your use case. Strong EU alternatives to Factory include JetBrains AI Assistant, JetBrains Junie and Lurus Code. On this page you can compare 6 EU alternatives by jurisdiction, data residency and open-source status.

Are there open-source alternatives to Factory?

Yes. Open-source EU alternatives to Factory include Mistral Code, Mistral Vibe CLI and SHAI (OVHcloud). These keep your data fully under your own control and let you self-host if you want to.

Is Factory GDPR-compliant and where is the data hosted?

Factory is headquartered in US and hosts data in US. Its GDPR compliance is limited or unclear. For full EU data residency the EU alternatives on this page usually offer more certainty.

Details and sources

Verified by handHeadquarters, owner, hosting locations and licence have been checked by us against public sources. Free of charge and for every vendor, not a paid label. Nothing in this knowledge base is taken over automatically. Last checked on October 11, 2026.

Sources

Public sources used in the latest check of this record.

Compliance evidence

The links below point to the vendor's own public documents. We only record what we found: a missing link means "not found publicly", not "not compliant".

No public compliance evidence has been recorded for this vendor yet. Do you know its DPA or subprocessor list? Something wrong? Suggest a correction

Digital sovereignty in AI Coding

AI Coding: AI-powered code assistants — code completion, terminal agents, AI-native IDEs. In this category the choice of vendor determines who has legal access to your data, where that data lives and how easily you can switch later.

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