Design decision pros and cons: static Builder or factory class inside an interface

I have 2 questions on what are the pros/cons of the following design for factories and builders: 1. static factory class inside an interface 2. static builder class inside an interface

Note: Here i am using HK2 for dependency injection. So @Contract annotates an interface while @Service represents an implementing class. The ServiceLocatorFactory will return an instance of the implementing class using HK2 dependency injection framework

Code sample#1: (static factory class inside an interface)

package org.swx.nursing.tools.sqlfinder.gui;

import java.awt.event.ActionListener;
import org.jvnet.hk2.annotations.Contract;
import prg.swx.nursing.tools.sqlfinder.servicelocator.ServiceLocatorFactory;

@Contract
public interface GuiTemplate extends ActionListener {

    public void createAndShowGUI(GuiTemplateCriteria guiCriteria);

    public static final class Factory{

        //Disable public instantiation
        private Factory (){
        throw new AssertionError();
    }

    public static GuiTemplate create(){
        return              
          ServiceLocatorFactory.getInstance().getService(GuiTemplate.class);
        };
    }
}

Code Sample#2 (static builder class inside an interface):

package org.swx.nursing.tools.sqlfinder.gui;
import org.jvnet.hk2.annotations.Contract;
import prg.swx.nursing.tools.sqlfinder.servicelocator.ServiceLocatorFactory;

@Contract
public interface GuiTemplateCriteria  {
    public String getDefaultMessageText();

    public static final class Builder {
        protected String defaultMessageText; 

        /**
         * Declared private to prevent direct instantiation by external consumers.
         */
        private Builder() {
        }

        /**
         * Creates a new Builder.
         * @return Non-null Builder.
         */
        public static Builder create()
        {
            return new Builder();
        }


        public Builder withDefaultMessageText(final String defaultMessageText)
        {
            this.defaultMessageText = defaultMessageText;
            return this;
        }


        public GuiTemplateCriteria build()
        {
            return ServiceLocatorFactory.getInstance().getService(GuiTemplateCriteria.class);
        }   
    }
}

In code sample 1 and 2, the factory and the builder can also be moved to the implementing classes or separate class. If i take the above approach, how good or bad the design is or what kind of discussion can be had on such a design.

Please advise

Thanks!