# Factory AI — Factory Acquires Mentlio: Building Intelligent Token Allocation for the Software Factory

- Company: Factory AI (factory.com)
- Announced: 2026-10-09
- Category: partnership-acquisition
- Coverage: not counted
- Announcement: yes
- Group: announcements
- Source: https://factory.com/news/mentlio
- Record: https://forck.live/items/18767-factory-acquires-mentlio-building-intelligent-token-allocation-for-the
- Subject: Droid

Factory announced the acquisition of Mentlio (YC S26), a startup building in-harness model routing and context compression to optimize cost and quality of AI usage. The acquisition aims to help Factory bring efficient and intelligent autonomous software engineering to large enterprises by measuring and optimizing AI spend.

## Evidence

Verbatim from https://factory.com/news/mentlio:

> As enterprises deploy agents at scale across the software development lifecycle, engineering leaders and CFOs are facing the same challenge: how to understand, measure, and optimize their AI spend to create concrete value and efficiently allocate AI investment to maximize the return-on-spend.

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