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Mercury 2 Language Diffusion Model from Inception Labs

Inception Labs is the AI co everyone's sleeping on. 3 profs from Stanford, Cornell and UCLA just dropped Mercury 2, the first reasoning language (and code) diffusion model ever. It is 10x faster and the cheapest model for its quality. They're not quite at frontier like the Claude 4.6 / 5.3s of the world but they are reshapinging pareto-frontier for price/quality and latency/quality. If they get to frontier, they'd upend the current economics of large language models.

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