# Mercury: Ultra-Fast Language Models Based on Diffusion

arXiv: https://arxiv.org/abs/2506.17298 · HTML: https://mlsanity.com/paper/2506.17298/

## Key facts

- Cited by 235 papers in the map (data through 14 Oct 2026).
- Placed in Diffusion reasoning and test-time scaling, one of 17 directions in LLM reasoning.
- Builds on 31 of its 36 references that are in the map.
- First posted on arXiv 17 Jun 2025.

## Placed in

- LLM reasoning / [Diffusion reasoning and test-time scaling](https://mlsanity.com/lr/diffusion-reasoning-and-test-time-scaling/)

## Builds on (most cited first, 30 of 31)

- [Attention Is All You Need](https://mlsanity.com/paper/1706.03762/) (2017)
- [Language Models are Few-Shot Learners](https://mlsanity.com/paper/2005.14165/) (2020)
- [Denoising Diffusion Probabilistic Models](https://mlsanity.com/paper/2006.11239/) (2020)
- [High-Resolution Image Synthesis with Latent Diffusion Models](https://mlsanity.com/paper/2112.10752/) (2021)
- [GPT-4 Technical Report](https://mlsanity.com/paper/2303.08774/) (2023)
- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [Evaluating Large Language Models Trained on Code](https://mlsanity.com/paper/2107.03374/) (2021)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Deep Unsupervised Learning using Nonequilibrium Thermodynamics](https://mlsanity.com/paper/1503.03585/) (2015)
- [Scalable Diffusion Models with Transformers](https://mlsanity.com/paper/2212.09748/) (2022)
- [Qwen2.5 Technical Report](https://mlsanity.com/paper/2412.15115/) (2024)
- [Mamba: Linear-Time Sequence Modeling with Selective State Spaces](https://mlsanity.com/paper/2312.00752/) (2023)
- [Generative Modeling by Estimating Gradients of the Data Distribution](https://mlsanity.com/paper/1907.05600/) (2019)
- [Program Synthesis with Large Language Models](https://mlsanity.com/paper/2108.07732/) (2021)
- [LiveCodeBench: Holistic and Contamination Free Evaluation of Large Language Models for Code](https://mlsanity.com/paper/2403.07974/) (2024)
- [Structured Denoising Diffusion Models in Discrete State-Spaces](https://mlsanity.com/paper/2107.03006/) (2021)
- [Is Your Code Generated by ChatGPT Really Correct? Rigorous Evaluation of Large Language Models for Code Generation](https://mlsanity.com/paper/2305.01210/) (2023)
- [Qwen2.5-Coder Technical Report](https://mlsanity.com/paper/2409.12186/) (2024)
- [Diffusion-LM Improves Controllable Text Generation](https://mlsanity.com/paper/2205.14217/) (2022)
- [WorldSimBench: Towards Video Generation Models as World Simulators](https://mlsanity.com/paper/2410.18072/) (2024)
- [Simple and Effective Masked Diffusion Language Models](https://mlsanity.com/paper/2406.07524/) (2024)
- [RWKV: Reinventing RNNs for the Transformer Era](https://mlsanity.com/paper/2305.13048/) (2023)
- [DeepSeek-Coder-V2: Breaking the Barrier of Closed-Source Models in Code Intelligence](https://mlsanity.com/paper/2406.11931/) (2024)
- [Efficient Training of Language Models to Fill in the Middle](https://mlsanity.com/paper/2207.14255/) (2022)
- [Likelihood-Based Diffusion Language Models](https://mlsanity.com/paper/2305.18619/) (2023)
- [MultiPL-E: A Scalable and Extensible Approach to Benchmarking Neural Code Generation](https://mlsanity.com/paper/2208.08227/) (2022)
- [The Amazon Nova Family of Models: Technical Report and Model Card](https://mlsanity.com/paper/2506.12103/) (2025)
- [Copilot Arena: A Platform for Code LLM Evaluation in the Wild](https://mlsanity.com/paper/2502.09328/) (2025)

## Built on by (most cited first, 30 of 235)

- [Dream 7B: Diffusion Large Language Models](https://mlsanity.com/paper/2508.15487/) (2025)
- [DiffuCoder: Understanding and Improving Masked Diffusion Models for Code Generation](https://mlsanity.com/paper/2506.20639/) (2025)
- [A Survey of Reinforcement Learning for Large Reasoning Models](https://mlsanity.com/paper/2509.08827/) (2025)
- [Seed Diffusion: A Large-Scale Diffusion Language Model with High-Speed Inference](https://mlsanity.com/paper/2508.02193/) (2025)
- [Diffusion LLMs Can Do Faster-Than-AR Inference via Discrete Diffusion Forcing](https://mlsanity.com/paper/2508.09192/) (2025)
- [Dream-Coder 7B: An Open Diffusion Language Model for Code](https://mlsanity.com/paper/2509.01142/) (2025)
- [A Survey on Diffusion Language Models](https://mlsanity.com/paper/2508.10875/) (2025)
- [wd1: Weighted Policy Optimization for Reasoning in Diffusion Language Models](https://mlsanity.com/paper/2507.08838/) (2025)
- [Diffusion Language Models Know the Answer Before Decoding](https://mlsanity.com/paper/2508.19982/) (2025)
- [dParallel: Learnable Parallel Decoding for dLLMs](https://mlsanity.com/paper/2509.26488/) (2025)
- [Any-Order Flexible Length Masked Diffusion](https://mlsanity.com/paper/2509.01025/) (2025)
- [Diffusion Language Models are Super Data Learners](https://mlsanity.com/paper/2511.03276/) (2025)
- [ParallelBench: Understanding the Trade-offs of Parallel Decoding in Diffusion LLMs](https://mlsanity.com/paper/2510.04767/) (2025)
- [SPG: Sandwiched Policy Gradient for Masked Diffusion Language Models](https://mlsanity.com/paper/2510.09541/) (2025)
- [Fine-Tuning Masked Diffusion for Provable Self-Correction](https://mlsanity.com/paper/2510.01384/) (2025)
- [d3LLM: Ultra-Fast Diffusion LLM using Pseudo-Trajectory Distillation](https://mlsanity.com/paper/2601.07568/) (2026)
- [The Devil behind the mask: An emergent safety vulnerability of Diffusion LLMs](https://mlsanity.com/paper/2507.11097/) (2025)
- [Beyond Fixed: Training-Free Variable-Length Denoising for Diffusion Large Language Models](https://mlsanity.com/paper/2508.00819/) (2025)
- [Improving Reasoning for Diffusion Language Models via Group Diffusion Policy Optimization](https://mlsanity.com/paper/2510.08554/) (2025)
- [Efficient-DLM: From Autoregressive to Diffusion Language Models, and Beyond in Speed](https://mlsanity.com/paper/2512.14067/) (2025)
- [MDPO: Overcoming the Training-Inference Divide of Masked Diffusion Language Models](https://mlsanity.com/paper/2508.13148/) (2025)
- [A Survey on Parallel Text Generation: From Parallel Decoding to Diffusion Language Models](https://mlsanity.com/paper/2508.08712/) (2025)
- [d2: Improving Reasoning in Diffusion Language Models via Trajectory Likelihood Estimation](https://mlsanity.com/paper/2509.21474/) (2025)
- [Scaling Beyond Masked Diffusion Language Models](https://mlsanity.com/paper/2602.15014/) (2026)
- [Training Optimal Large Diffusion Language Models](https://mlsanity.com/paper/2510.03280/) (2025)
- [Optimal Inference Schedules for Masked Diffusion Models](https://mlsanity.com/paper/2511.04647/) (2025)
- [DART: Diffusion-Inspired Speculative Decoding for Fast LLM Inference](https://mlsanity.com/paper/2601.19278/) (2026)
- [Nemotron-Labs-Diffusion: A Tri-Mode Language Model Unifying Autoregressive, Diffusion, and Self-Speculation Decoding](https://mlsanity.com/paper/2607.05722/) (2026)
- [Set Block Decoding is a Language Model Inference Accelerator](https://mlsanity.com/paper/2509.04185/) (2025)
- [From Bits to Rounds: Parallel Decoding with Exploration for Diffusion Language Models](https://mlsanity.com/paper/2511.21103/) (2025)

## Abstract (arXiv)

We present Mercury, a new generation of commercial-scale large language models (LLMs) based on diffusion. These models are parameterized via the Transformer architecture and trained to predict multiple tokens in parallel. In this report, we detail Mercury Coder, our first set of diffusion LLMs designed for coding applications. Currently, Mercury Coder comes in two sizes: Mini and Small. These models set a new state-of-the-art on the speed-quality frontier. Based on independent evaluations conducted by Artificial Analysis, Mercury Coder Mini and Mercury Coder Small achieve state-of-the-art throughputs of 1109 tokens/sec and 737 tokens/sec, respectively, on NVIDIA H100 GPUs and outperform speed-optimized frontier models by up to 10x on average while maintaining comparable quality. We discuss additional results on a variety of code benchmarks spanning multiple languages and use-cases as well as real-world validation by developers on Copilot Arena, where the model currently ranks second on quality and is the fastest model overall. We also release a public API at https://platform.inceptionlabs.ai/ and free playground at https://chat.inceptionlabs.ai