DiffuseDrive Funding News- Hungarian-founded DiffuseDrive Nets $3.5M In Seed Round

The company has already signed deals with several Fortune 500 companies and plans to open a new headquarters in Silicon Valley.

Read Also - Space Forge Funding News- British Spacetech Space Forge Secures £22.6M Series A Funding

The funding round was led by Outlander VC and Presto Tech Horizons, with support from previous investor E2VC. This brings the company’s total funding to $4.5 million.

DiffuseDrive’s technology helps solve a major challenge in AI: providing high-quality, realistic, and scalable training data needed for autonomous systems.

“The era of generic synthetic data is over,” said Balint Pasztor, co-founder and CEO of DiffuseDrive. “We’ve solved a core business challenge – delivering scalable, realistic data solutions in hours, not years. Fortune 500 companies are already seeing the impact and ROI.”

The company wants to become a key part of what's called “physical AI”. This means AI systems that are built into machines—like self-driving cars or robots—which need to see, understand, and interact with the real world around them.

“Advanced GenAI is transforming how machines make decisions – from the driver’s seat to the frontlines,” said Vojta Rocek, Partner at Presto Tech Horizons. “Virtualised training and decentralised decision-making are becoming mission-critical. DiffuseDrive is not only positioned to thrive on a global scale, but also at the forefront of saving human lives across both automotive and defense.”

The platform can create a wide variety of training data whenever it's needed. This makes it an important player in the AI and robotics market, which is expected to grow to $124 billion by 2030, according to Grand View Research.

“I look for companies with the potential to reshape entire industries and DiffuseDrive is doing just that,” said Jordan Kretchmer, Senior Partner at Outlander VC, who also joins the company’s board. “They are untapping a massive opportunity in physical AI by solving one of the fundamental challenges: data scarcity. In a market where speed, realism, and scale matter, they’re not just ahead of the curve - they’re building the curve.”

DiffuseDrive recently moved from Hungary to San Francisco, following a growing trend of Eastern European tech talent heading to the U.S. for better access to funding and customers in the fast-growing AI industry. In less than a year since launching, the company has already gained interest from Fortune 500 companies in areas like defense, cars, robotics, and aerospace.

As AI models and chips become more powerful, people are starting to focus more on the quality of training data, which is crucial but often overlooked. DiffuseDrive believes that in physical AI—like self-driving cars and robots—the main challenge is no longer computing power or model design, but having the right kind of data.

About DiffuseDrive

The company is building an end-to-end automated data solution to help computer vision developers create autonomous machines faster. By using generative AI, it removes the need for many steps in the data process, cutting development time in half and helping products reach the market 50% faster.