Diffusion language models (DLMs) offer parallel sampling for faster generation than autoregressive models, an increasingly important advantage as inference becomes a dominant computational workload. However, DLMs degrade quickly with fewer sampling steps, process the full sequence at every step, and require many passes over the dataset to reach good quality. We introduce Next-Concept Modeling (NCM), a two-stage, coarse-to-fine framework: a multiscale residual VQ-VAE encodes text into a hierarchy of discrete codes, and a transformer generates one level at a time, predicting all codes within a level in parallel. At matched parameter scales, NCM achieves better generative perplexity than the strongest DLM baseline on LM1B while running 21× faster. On OpenWebText, NCM is competitive with the strongest DLM while running 10× faster; on XSum, it matches the strongest DLM's ROUGE-L while being 31× faster. On the reasoning task of Sudoku, NCM outperforms autoregressive and diffusion baselines across all difficulty levels, using fewer function evaluations. On the reasoning task of Sudoku, NCM outperforms autoregressive and diffusion baselines across all difficulty levels, using fewer function evaluations.
Figures & tables
Figure 1: Generation efficiency and reasoning quality. (a,b) NCM achieves better or on-par quality with 21× and 31× lower wall-clock time on LM1B and XSum, respectively (Section 4.6 ). H denotes mean unigram entropy. (c) NCM maintains the highest Sudoku accuracy as difficulty increases, using fewer function evaluations (NFE) than the diffusion baselines.
Figure 2: Comparing text generation paradigms. Next-token prediction generates one token per step, and masked diffusion (discrete diffusion) refines all L positions at every step. NCM instead generates discrete codes rki , the i -th code of level k , from coarse to fine in K≪L steps: each step predicts the ℓk codes of one level in parallel, conditioned on the reconstruction z^(k−1) of the earlier levels, and after the final level, the cumulative reconstruction is decoded into tokens.
Figure 3: NCM generation trajectory. Output decoded after selected sampling steps of one German–English translation (WMT14), shown verbatim; the last step (gold frame) is the final output. Words matching the reference are shaded green. Coarse levels fix the high-level idea; finer levels fill in and correct the content. Appendix J.2 shows all sampling steps with their scores.
Figure 4: NCM’s two-stage training. (a) A multiscale residual VQ-VAE learns to encode text into a coarse-to-fine hierarchy of discrete codes r1,…,rK and reconstruct the input. (b) The NCM transformer predicts all codes within level k in parallel from the cumulative reconstruction z^(k−1) , resized to ℓk positions. In the unconditional setting, block-diagonal attention restricts each input block to itself. During training, all K levels are predicted in one forward pass using a cross-entropy loss. During generation, levels are predicted sequentially from coarse to fine.
Unconditional
Conditional
Reasoning (Sudoku)
OWT
LM1B
TinyStories
XSum
WMT14
Easy
Medium
Hard
Recon. acc. (%) ↑
99.99
99.86
99.98
99.79
98.79
100.00
100.00
100.00
Utilization (%)
83.10
89.31
90.12
86.20
61.89
0 80.73
0 83.85
0 80.73
Table 1: Tokenizer reconstruction and codebook utilization. Reconstruction accuracy measures exact token recovery on held-out text using the full hierarchy. Utilization is the mean percentage of codebook entries used across levels.
Figure 5: Unconditional generation quality and sampling cost. Generative perplexity (Gen. PPL; lower is better) against the number of function evaluations on TinyStories and LM1B, and against the sampling time per 1,024 -token sequence (batch size 16 ) on OpenWebText. NCM achieves competitive or better Gen. PPL compared to strong diffusion baselines with substantially fewer function evaluations and less time. H denotes mean per-sample unigram entropy.
WMT14 De–En
XSum
Type
Method
Size
BLEU ↑
NFE ↓
Size
ROUGE-1 ↑
ROUGE-2 ↑
ROUGE-L ↑
NFE ↓
–
AR †
99M
25.2
64
99M
30.5
10.2
24.4
64
Without guidance
Diff.
MDLM †
99M
18.4
64
99M
33.4
11.6
25.8
64
DUO †
205M
21.3
64
205M
31.4
10.1
25.0
64
E2D2 †
99M
24.8
64
99M
28.4
8.3
22.0
64
Table 2: Conditional generation quality and sampling cost. BLEU on WMT14 De–En and ROUGE-1/2/L on XSum (higher is better). Size denotes task-specific generator parameters; NFE counts generator calls per output. Bold and underlined values mark the best and second-best results within each non-AR decoding setting, including ties. † : results from Hu et al. [13] .
Figure 6: Model and test-time scaling. (a) Increasing generator size improves Gen. PPL while maintaining high sample entropy ( H ) on LM1B at a fixed generator training-token budget; the shared tokenizer is excluded from this panel. (b) Generating more candidates and selecting with MBR decoding improves BLEU on WMT14 and ROUGE-L on XSum. K denotes the number of candidates; wall-clock time measures sampling cost. On XSum, NCM outperforms diffusion baselines at matched inference time.
Figure 8: Qualitative samples from NCM. Unconditional generation samples are on LM1B. Conditional generation samples use prompts from a held-out OWT validation set. Summarization and translation samples are on XSum and WMT14 De–En, respectively. Additional samples are provided in Appendix J .
Appendix figures & tables19 assets
Supplementary material from the paper’s appendix.
Appendix
Dataset
Abbreviation
Task
Text tokenizer
Context c
Target L
OpenWebText [ 16 ]
OWT
Unconditional
GPT-2
Null prefix
1,024
One Billion Word [ 17 ]
LM1B
Unconditional
bert-base-uncased
Null prefix
128
TinyStories [ 40 ]
–
Unconditional
Custom BPE
Null prefix
128
Extreme Summarization [ 44 ]
XSum
Summarization
GPT-2
Article (512)
48
WMT 2014 German–English [ 41 ]
WMT14
Translation
Qwen3-0.6B
German (96)
64
Sudoku [ 50 ]
–
Reasoning
FMLM+ [ 49 ]
Puzzle
89
Appendix
Table 4: Datasets. Target length L is the number of target tokens, which equals the length ℓK of the finest level; context lengths are in tokens. “–” indicates that we use the full dataset name rather than a separate abbreviation.
Setting
OWT
LM1B
TinyStories
XSum
WMT14
Sudoku
Architecture
Text vocab. size
50,304
30,528
8,192
50,304
151,680
12
Target length L
1,024
128
128
48
64
89
Levels K
32
12
12
8
11
12
Codebook vocab. Vk
4,096
8,192
4,096
4,096
4,096
16
Latent width d
384
384
384
384
384
256
Appendix
Table 5: Tokenizers. Text vocabulary size includes unused padding rows. Nested dropout is the probability of dropping the finest levels; LM1B trains on the complete and a truncated hierarchy, weighted 0.7 and 0.3 .
Setting
OWT
LM1B
TinyStories
XSum
WMT14
Sudoku
Architecture
Parameters
94.65M
97.07M
88.61M
88.02M
119.96M
25.46M
Transformer blocks
12
12
12
12
12
8
Hidden width
768
768
768
768
768
512
Attention heads
12
12
12
12
12
8
Prefix length P
1
1
1
512
96
91
Appendix
Table 6: Generators. The prefix holds the source (XSum, WMT14), the puzzle (Sudoku), or a null token. Training settings for XSum and WMT14 describe conditional training. “–” means not applicable.
Model
Size
Tokens
Mistral-7B ↓
Llama-3.1-8B ↓
Gemma-2-9B ↓
Qwen-3-14B ↓
Avg. ↓
RDLM
108M
66B
179.54
315.40
1293.67
379.00
541.90
CANDI
139M
66B
67.75
99.96
208.59
125.87
125.54
MDLM
139M
66B
63.63
91.84
186.53
115.25
114.31
DUO
139M
66B
55.08
77.24
141.16
96.59
92.52
FLM
139M
66B
68.08
89.20
150.11
110.98
104.59
NCM
97M
13.36B
59.69
75.23
106.41
91.64
83.24
Appendix
Table 7: LM1B Gen. PPL (lower is better). Baselines use 128 steps; NCM uses 12. Size: generator parameters; Tokens: training budget (including tokenizer training for NCM ); Avg.: unweighted mean.
TinyStories
LM1B
OpenWebText
Type
Method
NFE ↓
Gen. PPL ↓
H
NFE ↓
Gen. PPL ↓
H
NFE ↓
Gen. PPL ↓
H
–
Data
–
9.67
3.96
–
53.51
4.31
–
14.15
5.44
AR
Sample
128
8.89
4.01
–
–
–
1024
35.45
5.58
Greedy
128
5.34
4.06
–
–
–
1024
1.07
1.65
Disc.
MDLM
128
17.89
4.03
128
115.45
4.33
1024
105.15
5.63
Duo
128
19.63
4.01
128
97.30
4.30
1024
77.69
5.55
Appendix
Table 8: Unconditional generation on TinyStories, LM1B, and OpenWebText. Gen. PPL under GPT-2-large and mean per-sample unigram entropy H ; the Data row scores ground-truth text; “–” means no result on that dataset. Lower Gen. PPL at an entropy below that of the data, as for FLM and FMLM+ on OpenWebText, partly reflects reduced diversity.
Figure 9: Ablation on the number of levels in the hierarchy. (a) Gen. PPL against training steps. (b) Gen. PPL at the final checkpoint. (c) Cumulative reconstruction accuracy per level.
Figure 10: Ablation on the level schedule. (a) Gen. PPL against training steps. (b) Gen. PPL of the final checkpoint at 10 k steps (bars). (c) Code lengths for six level schedules. H is the final per-sample unigram entropy.
Attention
Gen. PPL ↓
H
Time (s) ↓
Block-causal
19.63
4.01
7.90
Sliding window (2 levels)
17.84
3.99
6.83
Block-diagonal (ours)
15.41
3.98
5.65
Appendix
Table 9: Attention ablation on TinyStories. Quality uses the selected corruption recipe; H is mean unigram entropy. Times are for 1,024 TinyStories samples at 12 steps with batch size 16 (Section 4.6 ); block-causal and sliding-window times are 1.40× and 1.21× the block-diagonal time.
Figure 11: Attention over cumulative-reconstruction blocks. Allowed query–key pairs are colored by key level. (a) Causal (reference). (b) Block-causal. (c) Two-level sliding window. (d) Block-diagonal ( NCM ): attention stays within the current block, whose input already summarizes earlier levels.
Figure 12: Loss weighting on TinyStories. Left: loss share per level. Middle: Gen. PPL during training. Right: coarse-level validation loss, labelled with Gen. PPL after 10 k steps.
Figure 13: Effect of code corruption. Gen. PPL after 10 k steps vs. mean corruption rate. Nonzero rates use a shifted linear decreasing schedule; H is entropy.
Figure 14: Effect of classifier-free guidance. De–En BLEU and XSum ROUGE-1/2/L as a function of the guidance weight w . All three ROUGE metrics peak at w=0.5 , the setting reported in Table 2 ; BLEU, which is length-corrected, peaks later at w=1.0 .
Figure 15: Effect of MBR candidate count. De–En BLEU and XSum ROUGE-1/2/L against the number of sampled candidates K , on a log-spaced axis. Quality improves as more candidates are sampled. NCM ’s low sampling cost allows multiple candidates within the NFE budget that diffusion baselines use for a single sample, enabling extra inference compute to be used for sampling and verification through MBR selection.
Figure 16: Reconstruction and utilization by level. Left: exact token accuracy after decoding levels 0 through k at the final tokenizer checkpoint. Middle: percentage of the entries of each level’s codebook selected at least once. Right: effective codebook utilization, measured by the perplexity of each level’s code distribution, as a percentage of the codebook size.
Category
Original → reconstruction , in context
Named entities
…City Metro Sydney Melbourne Melbourne Brisbane Adelaide Adelaide Perth …
Diacritics
…ev sahibi takım takäm skoru … geriye düştü. düştüü …
…Biological and Physical SciencesJournal Sciences Journal of Chemical …
Appendix
Table 11: Tokenizer reconstruction errors on OpenWebText, by category. Struck-through grey: original; red: its reconstruction.
Figure 17: Shared structure, different realizations. Each column shows one source story and two samples generated with its coarse codes fixed. Text is shown verbatim to the 128-token limit, including unfinished endings. Yellow highlights added or replaced words relative to the corresponding source; deletions are not marked.
Figure 18: Mixing coarse representations. Each column shows two sources and one output with newly generated finer levels. Green (source A) and yellow (source B) highlight selected shared wording and details. All text is verbatim, including unfinished endings.
Figure 19: Replacing two early codes. Each example shows the original story, its level-1 code replacements, and paired clean and perturbed outputs with the same seed. Yellow marks word-level differences on both sides; punctuation-only changes are unmarked. Code positions index eight equal regions of the 128-token grid. Text is verbatim, including unfinished endings.
Table 12: German–English translation trajectory. Each row decodes the cumulative reconstruction after one level of a single NCM generation; text is shown as generated, and BLEU is computed per level against the reference. The final level (shaded) is the output.
Department of Engineering, University of Cambridge. · Devotion AI Labs Ltd. · Donders Institute for Brain, Cognition, and Behaviour, Radboud University.