China’s Innovative Approach To Brain–Computer Interfaces

Gestala, a startup founded by serial entrepreneur Phoenix Peng, has raised $21.6 million (CN¥150 million) in only two months after its launch. The company is currently valued between $100 million and $200 million, making the round the largest early-stage investment recorded in China’s brain–computer interface industry.

Investor demand significantly exceeded the original target. Commitments surpassed $58 million, and the round was co-led by Guosheng Capital and Dalton Venture. Additional investors included Tsing Song Capital, Gobi Ventures, Fourier Intelligence, Liepin and Seas Capital.

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Strategic Advantages In Research And Manufacturing

Gestala plans to leverage China’s manufacturing ecosystem and clinical research infrastructure to accelerate development in the brain–computer interface sector. The company intends to expand its workforce from 15 to around 35 employees by the end of the year and establish a dedicated manufacturing facility in China. According to Peng, these resources will support the development of the company’s first-generation prototype, which is expected to be completed before year-end.

Ultrasound: The Next Frontier In BCI Development

Gestala’s approach differs from several high-profile competitors, including Elon Musk’s Neuralink and the OpenAI-backed Merge Labs. Instead of focusing on implanted devices, the company is exploring ultrasound-based brain–computer interface technology.

Peng argues that noninvasive ultrasound systems can reduce the risks associated with brain surgery while providing access to deeper neural structures. The use of phased-array ultrasound technology allows researchers to stimulate or suppress neural activity with greater precision, potentially expanding the range of clinical applications.

A Global Collaboration Amid Geopolitical Tensions

Despite increasing geopolitical tensions, Peng believes collaboration between Chinese and international researchers remains essential for progress in neuroscience. China offers advantages in large-scale clinical trials and integrated manufacturing supply chains, while the United States continues to lead in scientific research and advanced laboratory capabilities. Combining these strengths could help researchers generate large clinical datasets that accelerate innovation in brain–computer interface technology.

Expanding Applications In Medical Science

Gestala is initially focusing on chronic pain treatment, a condition that affects millions of patients in both China and the United States. Early academic studies suggest ultrasound-based neural stimulation may provide measurable relief for certain forms of chronic pain. Researchers are also exploring the technology’s potential applications in mental health treatment, including depression, post-traumatic stress disorder, autism and obsessive-compulsive disorder. Additional research areas include stroke rehabilitation and neurological diseases such as Alzheimer’s, essential tremor and Parkinson’s disease.

Speed, Scale, And The Promise Of An Ultrasound Brain Bank

One of Gestala’s key advantages may lie in its ability to scale clinical research and manufacturing simultaneously. Partnerships with large Chinese hospitals are expected to accelerate clinical trials while keeping research costs significantly lower than in Western markets. Clinical studies in China can cost approximately 20% to 33% of comparable trials conducted in the United States or Europe. At the same time, the company is building what it calls an “Ultrasound Brain Bank,” a large clinical dataset designed to train artificial intelligence systems to interpret brain signals and support future neurological diagnostics.