Diffusion Language Models: How NVIDIA's Nemotron-Labs DLM Is Killing Token-by-Token Generation (opens in new tab)

Diffusion Language Models: How NVIDIA's Nemotron-Labs DLM Is Killing Token-by-Token Generation Published May 25, 2026 · 18 min read Table of Contents The Token-by-Token Tax — Why We Need Something Better Why Autoregressive Generation Is Fundamentally Memory-Bound What Is a Diffusion Language Model? The Efficient-DLM Training Trick: Converting AR Models Into DLMs Inside Nemotron-Labs Diffusion: Three Inference Modes Deploying DLMs with SGLang — A Practical Guide Fill-in-the-Middle and Code Inf...