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Inception Labs shipped the first reasoning model built on diffusion instead of autoregressive generation. Over 1,000 tokens per second, competitive benchmarks, and a fundamentally different approach to how AI generates text.
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A hands-on developer guide to Mercury 2 from Inception Labs. OpenAI-compatible API, reasoning levels, tool use, structured outputs, and when a diffusion LLM beats an autoregressive one in real apps.

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