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Diffusion language models: text generated by denoising blocks in parallel, not token by token.
Stefano Ermon, a co-inventor of the diffusion methods behind image generation, with former students Aditya Grover and Volodymyr Kuleshov. Mercury, launched February 2025, generates text by iteratively denoising blocks of tokens, which the company reports at more than 1,000 tokens per second on one H100. Same training data as camp 1, a different generative process, which is why it sits with the substrates.
| Amount | Kind | Valuation | Date | Investors | Source |
|---|---|---|---|---|---|
| $50M | seed | Nov 2025 | Menlo Ventures, Mayfield, Innovation Endeavors, M12, Snowflake Ventures, Databricks, NVentures | TechCrunch |
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