Matrix Partners China
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- DiffuSpace raises hundreds of millions of yuan in record dLLM funding round
Shenzhen diffusion-language-model startup DiffuSpace has completed two consecutive funding rounds co-led by Matrix Partners China, Shunwei Capital and Legend Capital, with CAS Star, Huawei Hubble and Horizon Robotics among the followers. The company did not disclose the exact amount; reports describe it as "hundreds of millions of yuan," while TMTPost says the total is close to RMB 500 million and calls it a record for global diffusion language model (dLLM) funding. Founded in Shenzhen in May 2026 by HKU NLP lab co-director Kong Lingpeng and his PhD students Gong Sansan and Ye Jiacheng, DiffuSpace says its earlier Dream 7B model has passed 2.5 million Hugging Face downloads and that a larger next-generation dLLM is being trained for release and open-sourcing soon.
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