Matrix Partners China

DiffuSpace (扩散智能), a Shenzhen maker of diffusion language models, has closed two rounds totalling tens of millions of dollars (several hundred million yuan), which it calls the largest funding for a diffusion language model company. Matrix Partners China, Shunwei Capital and Legend Capital co-led, with CAS Star, Huawei Hubble and Horizon Robotics also investing. The company says the capital will go to model training, vertical-scenario adaptation and infrastructure R&D, and that it will release a new open-source dLLM in October.

Non-invasive AI brain-computer interface company BCI-Sonics (华超神控) has raised $28M (RMB 200M) in a Pre-A round led by Sequoia Capital China and Yunqi Partners. Bilinxing Investment, Oriza Holdings, Xuhui Sci-Tech Investment and Deshi Investment joined, while existing backers Matrix Partners China and Delian Capital added on. The money will go to product R&D, core hiring, clinical research and AI infrastructure.

The company uses ultrasound neuromodulation, multimodal brain reading and AI neural decoding, and plans to take its closed-loop ultrasound brain-computer system into clinical trials by Q1 2027. Valuation was not disclosed.