Diffuse to Compress: Leveraging Diffusion LMs for Lossless Compression

We study the problem of lossless text compression, motivated by the rapid growth in the collection and storage of digital textual data - including plain text, source code, and structured formats such as XML - and by recent advances in neural language model-based compression. In particular, recent LLM-based approaches, whether built on symbol-ranking pipelines or paired with a statistical compressor, have demonstrated compression ratios significantly superior to general-purpose compressors such as zstd, gzip, or bzip on text and code. However, these neural approaches suffer from severe throughput limitations, making them not yet practically usable. For the first time in the context of lossless neural text compression, we introduce Diffusion Language Models (DLMs) as an alternative inference paradigm to autoregressive LLM-based approaches. We argue that replacing autoregressive LLMs with DLMs within the same compression framework could overcome the throughput bottleneck caused by their one-symbol-per-step limitation. However, achieving these improvements requires addressing algorithmic challenges introduced by applying DLMs to lossless compression, where the architecture allows the number and positions of symbols encoded at each forward pass to be decided independently. We design efficient and effective strategies to solve these challenges and evaluate them experimentally against LLM-based and general-purpose compressors on enwik8, a well-established textual benchmark. Our results show that the newly proposed DLM-based framework advances the state of the art in lossless text compression. Moreover, as DLMs are still a relatively young paradigm, recent advances toward increasingly capable and efficient models suggest substantial room for further improvements.