For a finite group G, let diam(G) denote the maximum diameter of a connected Cayley graph of G. A well-known conjecture of Babai states that diam(G) is bounded by (log 2 |G|) O(1) in case G is a non-abelian finite simple group. Let G be a finite simple group of Lie type of Lie rank n over the field Fq. Babai's conjecture has been verified in case n is bounded, but it is wide open in case n is unbounded. Recently, Biswas and Yang proved that diam(G) is bounded by q O(n(log 2 n+log 2 q) 3 ) . We show that in fact diam(G) < q O(n(log 2 n) 2 ) holds. Note that our bound is significantly smaller than the order of G for n large, even if q is large. As an application, we show that more generally diam(H) < q O(n(log 2 n) 2 ) holds for any subgroup H of GL(V ), where V is a vector space of dimension n defined over the field Fq.