Tech
Chinese brain interface startup Gestala raises $21M just two months after launch
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.
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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.
Tech
ElevenLabs lists BlackRock, Jamie Foxx, and Eva Longoria as new investors
Voice AI company ElevenLabs revealed new investors that are part of its $500 million Series D fundraise, which was first announced in February. The additions include institutions such as BlackRock, Wellington, D.E. Shaw, and Schroders; enterprises like Nvidia, Salesforce Ventures, Santander, KPN, and Deutsche Telekom; and individual investors such as Jamie Foxx, Eva Longoria, and Squid Game creator Hwang Dong-hyuk.
The startup also noted that it surpassed $500 million in ARR (annual recurring revenue), after ending last year with nearly $350 million in ARR. The company’s co-founder and CEO, Mati Staniszewski, said last month that ElevenLabs added $100 million in net new ARR in Q1 2026, ending the quarter at roughly $450 million in ARR.
The company has also accelerated its valuation rapidly, growing from $6.6 billion last September to $11 billion this February.
“Voice is the highest-stakes channel for any customer interaction, and the bar for quality, latency, and security is extremely high. ElevenLabs is not just a category leader – it is becoming a foundational enabler of Deutsche Telekom’s broader Industrial AI vision. From voice-as-a-service to multilingual automation and in-network AI agents, we believe the company is uniquely positioned to reshape how businesses interact with customers across all channels,” Karine Peters, managing director at Deutsche Telekom’s venture arm T.Capital, said in a statement.
In the past quarter, the voice AI company has signed enterprise contracts with the likes of Deutsche Telekom, Revolut, and Klarna.
ElevenLabs said that, besides the fundraising, it also closed a $100 million tender, a second in roughly six months after the company issued one last September. Staniszewski said in a blog post that the company will give an opportunity to retail investors to invest in ElevenLabs through Robinhood Ventures, but didn’t provide details about the program.
Staniszewski noted that consumers won’t trust systems that sound robotic or “interact strangely” and emphasized the importance of building “human-level AI voice models.” Last month, the company acquired the team from Polish voice AI startup Papla to bolster its research team.
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Tech
Kaspersky suspects Chinese hackers planted a backdoor into Daemon Tools in ‘widespread’ attack
Security researchers at Kaspersky say they have identified a malicious backdoor planted in the popular and long-running Windows disc imaging software, Daemon Tools.
The Russian cybersecurity company said on Tuesday that data collected from computers around the world running the Kaspersky antivirus software shows a “widespread” attack is under way, targeting thousands of Windows computers running Daemon Tools.
The hackers, whom Kaspersky has linked to a Chinese-language speaking group based on an analysis of the malware, used the backdoor in Daemon Tools to plant additional malware on a dozen computers across the retail, scientific and manufacturing sectors, as well as government systems. Kaspersky said the hacking of these specific computers implied a “targeted” effort.
The company said the targeted organizations are located in Russia, Belarus, and Thailand.
Kaspersky said the backdoor was first detected on April 8.
Kaspersky said it had contacted Disc Soft, the company that maintains Daemon Tools, but did not say if the developer responded or took action. Kaspersky said the supply chain attack is “still active,” suggesting that the hackers can still plant malware on thousands of computers running the disc imaging software.
This is the latest in a string of so-called “supply chain” attacks that have targeted developers of popular software in recent months. Hackers are increasingly taking aim at the accounts of developers who work on widely used code and software, and abusing that access to push malicious code to anyone who relies on the software. This approach lets the hackers break into a large number of computers at once when their malicious code is delivered as a software update.
Earlier this year, hackers associated with the Chinese government hijacked the popular text editing software Notepad++ to deliver malware to a number of organizations with interests in East Asia. Security researchers also warned of another attack last month targeting users who visited the website of CPUID, which makes the popular HWMonitor and CPU-Z tools.
TechCrunch downloaded the Windows installer from Daemon Tools’ website, and the file appeared to contain the backdoor when we checked it with the online malware scanner service VirusTotal.
It’s not known if the macOS version of Daemon Tools was compromised, or if other apps made by Disc Soft are affected.
When contacted for comment, a Disc Soft representative said they are “aware of the report and are currently investigating the situation.”
“Our team is treating this matter with the highest priority and is actively working to assess and address the issue. At this stage, we are not in a position to confirm specific details referenced in the report. However, we are taking all necessary steps to remediate any potential risks and to ensure the security of our users,” the representative said.
Do you know more about the cyberattack targeting Daemon Tools users? Did you receive an antivirus alert saying you were affected? We want to hear from you. To contact this reporter securely, reach out via Signal username zackwhittaker.1337.
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Tech
Etsy launches its app within ChatGPT as it continues its AI push
Etsy announced Tuesday the launch of its native app within ChatGPT, opening up a new way for shoppers to explore its catalog of over 100 million listings.
The new experience is designed to move beyond the limitations of traditional keyword queries. Instead of typing something like “wooden coffee table,” then scrolling and adjusting filters, users can now express what they’re looking for in natural language. For instance, “Help me find a Mother’s Day gift under $100 for my mom who loves gardening.”
Now live in beta, the feature allows users to tag @Etsy directly within a prompt. From there, the Etsy app in ChatGPT surfaces relevant product listings that users can browse, compare, and click through to Etsy for additional details or purchase.
This isn’t Etsy’s first experiment inside ChatGPT. Back in September, Etsy became an early partner in ChatGPT’s Instant Checkout integration, which let users buy products directly inside the chat interface. However, the initiative ended in March, suggesting it didn’t perform as OpenAI had hoped. It was reported that Etsy didn’t see a large volume of sales from the integration, leading Etsy to start building a native app within ChatGPT instead.
Alongside this launch, Etsy also revealed it’s testing a beta conversational search experience within its platform, specifically geared toward helping users find gifts. The gift assistant acts as a personal shopper, offering a guided, conversational way to discover ideas, narrow down preferences, and surface relevant products.

This builds on Etsy’s broader AI push, which includes an AI-powered discovery experience featuring curated collections and a suite of seller tools, including a tool that helps generate product titles and descriptions, as well as a writing assistant to help draft messages to buyers. In 2024, Etsy introduced a new “Designed” label to identify AI content, part of an effort to increase transparency as AI-generated artwork becomes more prevalent on the platform.
The news of a ChatGPT integration comes a week after Etsy reported its Q1 2026 earnings, surpassing revenue expectations with $631 million, and marketplace gross merchandise sales were up 6% year over year. Notably, active buyers increased for the first time in two years to 86.6 million. Etsy also touted 5.6 million active sellers on the platform.
In February, the company announced it was selling Depop to eBay for $1.2 billion in cash, a move aimed at doubling down on its core marketplace.
Etsy joins a growing list of companies building native apps within ChatGPT, including Angi, SeatGeek, Tubi, and Wix. Developers have been able to build apps within the chatbot since October.
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