Elon Musk’s Neuralink and OpenAI-backed Merge Labs are pushing ahead with brain-computer interface (BCI) technology in the US. Meanwhile, Chinese serial entrepreneur Phoenix Peng is building rival efforts through two startups: NeuroXess, which develops implantable BCI systems, and another company, Gestala, which develops non-invasive B-ultrasound-based.
Gestala has raised $21.6 million (CN¥150 million) just two months after launching, at a valuation of $100 million to $200 million, founder and CEO Phoenix Peng told TechCrunch.
The round, jointly led by Guosheng Capital and Dalton Venture with participation from Tsing Song Capital, Gobi Ventures, Fourier Intelligence, Liepin and Seas Capital, was heavily oversubscribed with investor commitments totaling more than $58 million, Peng added.
This is the largest early funding in China’s BCI industry. Peng will use the money for research and development, expand the team from 15 to about 35 employees by the end of the year and build a manufacturing facility in China. The three-month-old startup aims to complete its first generation prototype by the end of the year.
The global BCI industry is currently experiencing an increase in investment in ultrasound technology. Gestala is the first ultrasound BCI company in China, but not the first globally. Several ultrasound BCI startups have emerged in the US in recent years, including Merge Labs, which is among the largest.
Peng believes that ultrasound may represent the next generation of brain-computer interface technology, offering the potential for broader access to the entire brain and new ways to interact with neural activity.
The founder says that non-invasive ultrasound could solve one of the biggest barriers to BCI adoption: the risks associated with brain surgery. Compared to implanted electrode systems, the technology can monitor a larger part of the brain, including deep neural circuits. Using phased-array ultrasound, the system can also precisely stimulate or suppress neural activity without the need for surgery, he explained.
Techcrunch event
San Francisco, CA
|
13.-15. October 2026
Despite rising geopolitical tensions, Peng still hopes the US and China can cooperate on deep-tech research.
“Both countries have different strengths,” Peng said. “China offers large-scale clinical research capacity and efficient supply chains, while the United States has world-class scientific talent.” Joint efforts could also focus on building large clinical data sets to support global neuroscience research, he mentioned.
The company is exploring multiple uses for its technology. Medically, chronic pain management is the startup’s main program. Chronic pain affects large populations in both the United States and China, and existing academic studies suggest that ultrasound stimulation can significantly reduce pain levels, Peng said.
The startup is also studying applications in mental disorders including depression, PTSD, autism and OCD, as well as stroke rehabilitation. Other long-term targets include Alzheimer’s disease, essential tremor and Parkinson’s disease. In total, the company is researching six to eight potential indications, although most remain in the early research stage rather than in clinical trials.
Gestala says its advantage over global rivals comes down to speed and scale. By leveraging China’s integrated manufacturing ecosystem, the startup believes it can go from development to production faster than many international competitors.
The company is also working with major Chinese hospitals to accelerate clinical trials at significantly lower costs — about 20% to 33% of comparable studies in the U.S. or Europe. At the same time, Gestala is building what it calls an “Ultrasound Brain Bank,” a large clinical data set designed to train AI models to decode brain signals and support future neurological diagnostics.