Factory CEO Matan Grinberg fired board adviser Chris Degnan. Grinberg alleges Degnan shared confidential Factory information with competitor Cognition. Degnan announced he joined Cognition as chief revenue officer. Degnan says he resigned and was not fired. Degnan denies sharing confidential information. Grinberg claims Degnan misled him about talks with Cognition. Degnan says his last Factory board meeting was before any Cognition contact. Khosla Ventures partners publicly disputed the account. Cognition CEO Scott Wu says his firm has no interest in Factory’s information. The dispute highlights concerns about board-level conflicts of interest in AI startups.