Last week, Inception Labs launched Mercury 2, a large language model based on diffusion rather than the autoregressive approach used by every major AI lab. And on this week’s episode of The New Stack Agents, Inception CEO and co-founder Stefano Ermon explains how the diffusion model of generative AI could reshape how we build AI applications.
But first, some background: Traditional LLMs generate text one token at a time, left to right, a system that Ermon calls “fancy autocomplete.” Meanwhile, diffusion models work differently: They…

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