No Priors: Artificial Intelligence | Technology | Startups
No Priors: Artificial Intelligence | Technology | Startups
Conviction
Why Diffusion Will Win AI Inference with Inception Co-Founder and CEO Stefano Ermon
38 minutes Posted Sep 18, 2026 at 10:00 am.
– Stefano Ermon Introduction
– Research Background
– Starting Inception
– Why Diffusion Beats Autoregressive
– Discrete vs. Continuous Modalities
– Inception Today
– Where Speed Wins
– Inception Customer Base
– Interaction with Hardware Landscape
– Inception and the Broader Industry
– Data Compression and Structure
– Controllability of Diffusion Modeles
– Emergent Capabilities at Scale
– Future Workload Split Between Diffusion vs. Traditional
– Adoption Challenges
– Hiring and Team Organization
– Recursive Self Improvement
– Resource Allocation
– Impact of Academia
– Conclusion
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Show notes
As generative AI hits hardware and latency bottlenecks, Stanford professor, diffusion pioneer, and Inception co-founder and CEO Stefano Ermon is betting on a radical new architecture. Stefano joins Sarah Guo to talk about Inception, and how his team is applying diffusion architecture beyond images and video into discrete text and code generation. Stefano explains the limitations of autoregressive LLMs, as well as why parallel token generation in diffusion models offers superior inference scaling and hardware utilization on standard GPUs. He also shares details about Inception’s Mercury models, real-world voice agent applications, the software stack required to serve diffusion-based models at scale, academia’s role at the frontier of AI innovations, and why the next era of AI competition will be defined by efficiency. 
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