When AI startup Factory had just 30 employees, Chief Executive Matt Grinberg made an unusual investment in its workforce. Instead of spending on fancy office amenities, he purchased eight Sleep mattress covers for each employee worth $3,000. Grinberg said better rest translates to better performance and he compared engineers to professional athletes who require proper recovery. He believes that quality sleep improves focus, creativity and decision-making abilities. The company has since grown to approximately 120 employees and has raised $150 million from major investors. Yet Grinberg still sees sleep and wellness as the core of productivity, rather than luxury benefits.
Factory CEO chose sleep over flashy amenities
Grinberg discussed the benefits on the “20VC” podcast before explaining his thinking to Business Insider. He said he wants employees to make the most of their mental abilities and sees proper rest as a key component to high-quality work. He believes that lasting performance matters more rather than measuring long-term dedication.His approach reflects broader changes in Silicon Valley. The era of extravagant amenities and office entertainment has faded as founders increasingly focus on health, recovery, and long-term productivity. Companies are spending more on benefits that support physical and mental well-being than on benefits that make workplaces fun.The Eight Sleep Covers use water-based temperature regulation to heat or cool the bed throughout the night. Couples can customize each side independently and newer versions include adjustable height features. The system also tracks sleep metrics and automatically optimizes temperature settings.Sleep temperature has become an area of scientific interest. A 2024 study published in the journal Bioengineering found that a temperature-controlled mattress improved sleep quality and cardiovascular recovery in some participants. Another study published in Bioengineering & Translational Medicine in 2025 reported improvements in subjective sleep quality, thermal sensation, and comfort among users, although there was little change in objective sleep measures. Overall, the findings suggest that controlling bed temperature may enhance the overall sleep experience.
The factory has expanded rapidly since its establishment
Established in 2023, the factory has grown to be a company with about 120 employees. In April, the startup raised $150 million from investors including Khosla Ventures, Sequoia Capital and Blackstone. The company operates in the highly competitive AI sector where attracting top engineering talent has become increasingly important.The mattress covers were purchased when the company had only 30 employees. New employees haven’t received the equipment yet, but Grinberg said he’s considering making the benefit a standard offering or replacing it with a health stipend. Such programs are becoming more common as startups compete with larger companies for skilled workers.
Well-being is more important than lavish facilities
Grinberg said he has no desire to recreate the grandiose culture that was once associated with Big Tech. He also rejects the idea that employees must prove themselves through excessive work schedules. According to him, no single approach gives the best results.His attention extends beyond sleep. He limits processed sugar at the office and spends more on healthier options like protein chips and canned matcha. Similar ideas are spreading in the technology sector. The CEO of fitness company Whoop previously offered financial rewards to employees who maintained high sleep scores. Wellness is increasingly being viewed as a business strategy rather than just an employee benefit.
Better sleep can improve work
Grinberg admits he can’t measure how much productivity improved after giving employees the devices. He also stressed that he has no plans to monitor sleep data or become a “big big brother.” Employees appreciated the gift and the company joked that it had not reached the point where someone would say, “Billy didn’t sleep well, so don’t trust his code today.”