One Latent, Many Tokens: Jointly Learning Compressed Embeddings for Efficient Language Diffusion

Latent diffusion models offer an attractive alternative to discrete diffusion for non-autoregressive text generation by operating on continuous text representations and denoising entire sequences in parallel. The major challenge in latent diffusion modeling is constructing a suitable latent space. In this work, we present the Latent Diffusion Language Model (LDLM), in which the latent encoder, diffusion model, and decoder are trained jointly. LDLM builds its latent space by reshaping the representations of a pre-trained language model with a trainable encoder, yielding latents that are easy to both denoise and decode into tokens. We show that naive joint training produces a low-quality diffusion model, and propose a simple training recipe consisting of an MSE decoder loss, diffusion-to-encoder warmup, adaptive timestep sampling, and decoder-input noise. Ablations show that each component substantially impacts generation performance. On OpenWebText and LM1B, LDLM achieves better generation performance than existing discrete and continuous diffusion language models while being $2{\text -}13\times$ faster, indicating that jointly learning the latent space is a key step toward making latent diffusion competitive for text generation.

Diffusion language models (DLMs) offer a promising alternative to autoregressive (AR) language generation. Recent advances in continuous DLMs, which apply latent diffusion to continuous text embeddings, raise a practical question: which embedding makes the best latent space, i.e., the most diffusible? To answer this, we search through different embeddings and find that scaling the embedding model to stronger ones within the same family (T5 to T5Gemma-1 to T5Gemma-2) greatly improves generative performance. But the raw T5Gemma-2 embeddings are still not optimal. They are so discriminative that even the embeddings of plausible alternative words are separated, which makes the generation vulnerable to imperfect sampling. Consequently, continuous diffusion often fails to reach any of them and ends up at an invalid embedding instead. To address this, we distill T5Gemma-2 into a student encoder that learns the teacher's decoded probabilities as soft labels. Learning from such soft labels makes the student pull the alternative embeddings closer while maintaining the encoding-decoding mechanism. The distilled embeddings form a more connected and diffusible latent space, improving over the vanilla T5Gemma-2 embeddings. As a result, our medium-sized DLM achieves Gen. PPL 17.8 (against real-text PPL 15.4) at real-text entropy on OpenWebText, outperforming GPT-2-M on Gen. PPL.

Diffusion and flow-based models have become the de facto approaches for generating continuous data, e.g., in domains such as images and videos. Their success has attracted growing interest in applying them to language modeling. Unlike their image-domain counterparts, today's leading diffusion language models (DLMs) primarily operate over discrete tokens. In this paper, we show that continuous DLMs can be made effective with minimal adaptation to the discrete domain. We propose Embedded Language Flows (ELF), a class of diffusion models in continuous embedding space based on continuous-time Flow Matching. Unlike existing DLMs, ELF predominantly stays within the continuous embedding space until the final time step, where it maps to discrete tokens using a shared-weight network. This formulation makes it straightforward to adapt established techniques from image-domain diffusion models, e.g., classifier-free guidance (CFG). Experiments show that ELF substantially outperforms leading discrete and continuous DLMs, achieving better generation quality with fewer sampling steps. These results suggest that ELF offers a promising path toward effective continuous DLMs.