LDM-is-AE: Latent Diffusion Model is an Auto-Encoder for End-to-End Image Generation

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 Transformers (DiT) trained with flow matching in a VAE latent space have unified visual generation across images and videos. A natural next step toward a single architecture for both generation (visual synthesis) and understanding (text generation) is to apply this framework to language modeling. We propose TextLDM, which transfers the visual latent diffusion recipe to text generation with minimal architectural modification. A Transformer-based VAE maps discrete tokens to continuous latents, enhanced by Representation Alignment (REPA) with a frozen pretrained language model to produce representations effective for conditional denoising. A standard DiT then performs flow matching in this latent space, identical in architecture to its visual counterpart. The central challenge we address is obtaining high-quality continuous text representations: we find that reconstruction fidelity alone is insufficient, and that aligning latent features with a pretrained language model via REPA is critical for downstream generation quality. Trained from scratch on OpenWebText2, TextLDM substantially outperforms prior diffusion language models and matches GPT-2 under the same settings. Our results establish that the visual DiT recipe transfers effectively to language, taking a concrete step toward unified diffusion architectures for multimodal generation and understanding.

High-compression tokenizers are essential for scaling latent image generative models. However, aggressive compression creates a fundamental tradeoff between reconstruction fidelity and generation efficiency: high compression image encoder always increases the learning difficulty of diffusion training, resulting in slow model convergence. Recent representation autoencoders speed up the diffusion training by improving the latent feature's expressive capability by replacing VAE encoders with pretrained semantic encoders, yet they are typically limited to moderate compression and lose pixel-level details necessary for faithful reconstruction. To achieve both high compression and fast diffusion training, we propose DC-SAE, a Decoupled Compact Semantic Autoencoder designed for high-compression image generation with accelerated diffusion model convergence. DC-SAE consists of two key components: (1) a macro-level architecture design that leverages semantic encoders to enable higher compression ratios, and (2) a pixel-level encoder that preserves low-level details, ensuring high-fidelity image reconstruction. We empirically demonstrate that DC-SAE performs strongly on image generation tasks, achieving both compact latent representations and efficient training dynamics. Specifically, on the ImageNet dataset with $512 \times 512$ resolution, DC-SAE achieves $32\times$ spatial compression, with 29.79 PSNR and 3.37 gFID, substantially outperforming the previous state-of-the-art high-compression tokenizer baselines DC-AE by 13.5% and 54.9% on PSNR and gFID, respectively, maintaining comparable throughput and faster diffusion model training convergence. Beyond class-conditional generation, a $1.6$B-parameter DiT using DC-SAE achieves 0.84 on GenEval and 86.007 on DPG-Bench for text-to-image generation at $1024\times1024$ resolution.