On Thursday, Inception Labs released Mercury Coder, a new AI language model that uses diffusion techniques to generate text faster than conventional models. Diffusion-based models like Mercury produce entire responses simultaneously, refining them from an initially masked state into coherent text. Its approach allows the model to refine outputs and address mistakes because it isn't limited to considering only previously generated text. This parallel processing enables Mercury's reported 1,000-plus tokens per second generation speed on Nvidia H100 GPUs.