Elon Musk’s Neuralink and OpenAI-backed Merge Labs are pushing forward with brain–computer interface (BCI) technology in the U.S. Meanwhile, Chinese serial entrepreneur Phoenix Peng is building rival efforts through two startups: NeuroXess, which develops implantable BCI systems, and a second company, Gestala, developing non-invasive ultrasound-based BCIs.

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, co-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-stage funding in China’s BCI industry. Peng will use the money towards R&D, expanding the team from 15 to about 35 employees by year-end, and building 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 investment surge in ultrasound technology. Gestala is the first ultrasound BCI company in China, though not the first globally. Several ultrasound BCI startups have emerged in the U.S. in recent years, including Merge Labs, which is among the largest.

Peng believes ultrasound could represent the next generation of brain–computer interface technology, offering the potential for broader, whole-brain access and new ways to interact with neural activity.

The founder says non-invasive ultrasound could address one of the biggest barriers to BCI adoption: the risks associated with brain surgery. Compared with implanted electrode systems, the technology can monitor a larger portion 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.

Despite rising geopolitical tensions, Peng still hopes the U.S. and China can collaborate on deep-technology research.

“Both countries bring different strengths,” Peng said. “China offers large-scale clinical research capacity and efficient supply chains, while the U.S. has world-class scientific talent.” Joint efforts could also focus on building large clinical datasets to support global neuroscience research, he mentioned.

The company is exploring several uses for its tech. Medically, chronic pain management is the startup’s lead program. Chronic pain affects large populations in both the U.S. and China, and existing academic studies suggest ultrasound stimulation can significantly reduce pain levels, Peng said.

The startup is also studying applications in mental health conditions, including depression, PTSD, autism and OCD, as well as stroke rehabilitation. Other longer-term targets include Alzheimer’s disease, essential tremor and Parkinson’s disease. In total, the company is researching six to eight potential indications, though most remain at 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 move 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 — roughly 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 dataset designed to train AI models to decode brain signals and support future neurological diagnostics.