# DiffuSpace Raises Hundreds of Millions for Diffusion Models

> Chinese AI startup DiffuSpace secured hundreds of millions of yuan in funding for next-gen diffusion language models.
- Title: DiffuSpace Raises Hundreds of Millions for Diffusion Models
- Summary: Chinese AI startup DiffuSpace secured hundreds of millions of yuan in funding for next-gen diffusion language models. DiffuSpace raised hundreds of millions…
- Keywords: diffusion language models, diffu space, matrix partners china, shunwei capital, legend capital, horizon robotics, hugging face, startups, business, DiffuSpace, Raises, Hundreds
- Source: Dealroom — https://dealroom.co/news/163707-diffuspace-raises-hundreds-of-millions-of-yuan-for-diffusion-language-mo
- Published: 2026-10-18T20:40:46+00:00
- Read time: 1 min
- Topics: diffusion language models, diffu space, matrix partners china, shunwei capital, legend capital, horizon robotics, hugging face, startups, business
## Funding Round
DiffuSpace closed an early-stage round totaling hundreds of millions of yuan.
## Why Diffusion Models?
Diffusion models generate text in parallel and revise positions during generation for five-to-tenfold speedups.
## Team Background
Founded in May 2026 by University of Hong Kong professor Kong Lingpeng and doctoral students.
## Model Performance
Dream 7B model surpassed autoregressive models with 2.5 million Hugging Face downloads.
## Key takeaway

DiffuSpace raised hundreds of millions of yuan for diffusion language models to compete with autoregressive approaches.