AI Glossary
Latent diffusion
Also called LDM
What does “Latent diffusion” mean?
Latent diffusion: Running the diffusion process in a compressed representation (the "latent space") rather than on full-size pixels. An autoencoder shrinks images into compact latents, diffusion happens there, and a decoder turns the result back into an image. This makes generation far cheaper.

What is an example of “Latent diffusion”?
Working in latents is a key reason Stable Diffusion could run on consumer graphics cards rather than only in data centers.