DiffuSpace raises hundreds of millions of yuan in record funding for diffusion LLMs
创业邦 · wechat · 2026-10-09
Shenzhen-based DiffuSpace completed two consecutive funding rounds totaling hundreds of millions of RMB on Oct 9, led by Matrix Partners, Shunwei Capital and Legend Capital, with participation from Casstar, Huawei Hubble and Horizon Robotics — the largest funding record for diffusion language models (dLLMs) globally. Founded in May 2026 by HKU NLP lab co-director Kung Lip-ping and team members.
Key points:
- Unlike autoregressive LLMs, dLLMs generate text via parallel prediction and iterative refinement. The team's Dream7B (April 2025) beats similarly sized autoregressive models on math, code and planning benchmarks, approaching far larger DeepSeek V3 on some metrics; inference throughput is claimed 10x.
- The space is heating up: dLLM papers in the first eight months of 2026 hit 2.4x all of 2025; Ant's LLaDA2.0 scales to 100B params, Inception Labs' Mercury commercializes with >1000 tokens/s on H100, and Google shipped Gemini Diffusion and the 26B DiffusionGemma (4x speedup).
- Open questions remain on long context, training cost, stability and complex agent tasks, but dLLMs may become the "second leg" beyond autoregression.
Related event: DiffuSpace Raises Record Funding for Diffusion Language Models(2 posts)→
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