When artificial intelligence startup Factory had just 30 employees, CEO Matan Grinberg made an unusual investment in his employees. Instead of spending it on flashy office perks, he purchased $3,000 worth of eight-sleep mattress covers for each employee. Greenberg said better rest can translate into better performance, comparing engineers to professional athletes who need proper recovery. He believes that quality sleep improves concentration, creativity and decision-making skills. The company has since grown to approximately 120 employees and raised $150 million from major investors. Yet Greenberg still sees sleep and health as core to productivity, not luxury perks.
Factory CEO chooses sleep over flashy perks
Greenberg first discussed the benefit on the “20VC” podcast and then explained his thinking to Business Insider. He said he wants employees to use their intellectual abilities to the fullest and sees proper breaks as an important part of high-quality work. He believes sustainable performance is more important than measuring dedication through long hours.His approach reflects a broader shift in Silicon Valley. As founders increasingly focus on health, recovery, and long-term productivity, the days of lavish perks and office entertainment are over. Companies are investing more in benefits that support physical and mental health rather than benefits that just make the workplace look fun.Eight sleep comforters utilize water-based thermoregulation 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 adjusts temperature settings.Sleep temperature has become an area of scientific concern. A 2024 study published in the journal Bioengineering found that temperature-controlled mattresses improved sleep quality and cardiovascular recovery in some participants. Another study published in Bioengineering & Translational Medicine in 2025 reported improvements in users’ subjective sleep quality, thermal sensation, and comfort, but little change in objective sleep measures. Overall, the findings suggest that regulating bed temperature can improve the overall sleep experience.
The factory has expanded rapidly since its establishment
Factory was founded in 2023 and has grown into a company with approximately 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 field of artificial intelligence, where attracting top engineering talent is increasingly important.The mattress covers were purchased when the company had only 30 employees. New hires have not yet received the devices, but Greenberg said he is considering converting the benefit into a standard benefit or replacing it with a wellness stipend. Such programs are becoming increasingly common as startups compete with large corporations for skilled workers.
Health is more important than luxurious benefits
Greenberg said he doesn’t want to recreate the luxury culture once associated with big tech companies. He also rejects the idea that employees should prove themselves through extreme work arrangements. According to him, neither approach yields optimal results.His focus was not limited to sleep. He limits processed sugar in the office and spends more on healthier options like protein tablets and canned matcha tea. Similar ideas are spreading across the tech world. The CEO of fitness company Whoop has previously offered financial rewards to employees who maintained high sleep scores. Wellness is increasingly viewed as a business strategy, not just an employee benefit.
Better sleep may lead to better work
Greenberg admits he can’t accurately measure how much productivity increases after giving workers the devices. He also emphasized that he has no plans to monitor sleep data or become a “big brother”. Employees applauded the gift, and the company joked that it hasn’t reached the point where someone says, “Billy didn’t sleep well, so don’t trust his code today.”
