An AI startup CEO has taken an unusual approach to improving workplace performance, giving employees expensive sleep technology instead of traditional office perks. Matan Grinberg, CEO of AI startup Factory, gifted every employee a $3,000 Eight Sleep mattress cover when the company had only 30 workers, saying better sleep could help employees perform better, Business Insider reported.
Factory, founded in 2023, has expanded quickly and now has around 120 employees. The company also raised $150 million in April with backing from investors including Khosla Ventures, Sequoia Capital, and Blackstone.
CEO compares engineers with professional athletes
Grinberg revealed the employee benefit during an appearance on "20VC", calling it an example of startup spending that may appear unusual.
"The decadence of startups, right?" he said.
The CEO later explained that he viewed his engineers similar to professional athletes who need proper recovery to perform at their best.
"I want to make sure everyone is squeezing out every ounce of brain power they have," he said. "To do that, you need to get good sleep."
Eight Sleep mattress covers are designed to regulate bed temperature by using a liquid-based cooling and heating system. The technology allows different sides of a bed to maintain different temperatures and newer versions also offer features that adjust the bed’s position.
Sleep becomes a new workplace benefit trend
Grinberg said he believes quality sleep is connected with better decision-making and focus. However, he said the company does not track employees’ sleeping habits or use the technology to monitor performance.
"We joke at the office: Imagine measure, 'Billy didn't sleep well, so don't trust his code today,'" Grinberg said. "We haven't gone that far."
He said the aim was to provide a useful benefit without becoming overly controlling.
Startup rejects old-style workplace perks
The Factory CEO said he does not want to follow the trend of offering flashy office entertainment benefits that became popular among large technology companies in the past.
Grinberg criticised the era of workplace perks such as games and recreational facilities, saying many of those benefits were not directly connected to work.
He also rejected the culture of extreme working hours, describing the practice of showing off long work schedules as "grindslop".
"We're not running a daycare," he said. "I don't need to mandate certain hours."
Health-focused benefits gain popularity among companies
Several startup leaders have experimented with unusual employee benefits to attract talent and improve performance. Some companies have invested in wellness-related programmes, food options, and health incentives.
The focus on sleep has also grown after the pandemic, with many people turning to products such as sleep trackers and wearable devices. The online trend of improving sleep quality is often referred to as "sleepmaxxing".
Other company leaders have also encouraged better rest. The CEO of wearable technology company Whoop said in 2024 that employees could receive $100 per month if their average sleep performance reached a certain level.
Factory may make sleep benefit standard for employees
Grinberg said he has not yet provided the Eight Sleep products to all new employees but is considering making them a standard benefit or offering a similar health allowance.
He admitted that he could not measure exactly how much the mattress technology improved productivity. However, he believes employees benefit from better rest.
"They're going to be better," he said of his employees on the podcast. "They're going to have more of their wits about them. They'll be sharper."
