Physix Frontier · News Briefing Card (TMTPost · Oct 9, 2026)

DiffuSpace Raises Nearly 500M Yuan, Huawei Horizon Join

KEY FACTS

DiffuSpace recently closed two funding rounds totaling nearly 500 million yuan.
Matrix Partners China, Shunwei Capital, and Legend Capital co-led the rounds, with Huawei Hubble, Horizon, and others participating.
The company was founded by the HKU team led by Kong Lingpeng and established in Shenzhen in May 2026.
DiffuSpace is training a 30B diffusion language model, with plans to release and open-source it soon.
Its predecessor team jointly launched the Dream 7B model with Huawei in 2025.

KEY DATA

Nearly 500 million yuanTotal of two funding rounds

Over 2.5 millionDream 7B downloads

30BParameters of model in training

5 to 10xOn-device inference speedup

PHYSIX OBSERVATION

Diffusion language models have long been viewed as a non-consensus path, and industrial capital's bet shows that on-device agents and embodied intelligence have real demand for parallel decoding and reversible correction. But 500 million yuan is only enough to support one round of large-model training; whether DiffuSpace can leverage the open-source ecosystem to mobilize developers within the 2026 window is more worth watching than the funding record.

Source: TMTPost report