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Diffusion Models: AI Technique Powering Modern Image, Video, and “World” Models

  • Writer: Jayant Upadhyaya
    Jayant Upadhyaya
  • 2 hours ago
  • 6 min read

If you’ve used modern AI tools that generate images or videos, you’ve already seen diffusion in action. Diffusion models are one of the most important ideas in AI right now, and they’re showing up everywhere: image generation, video generation, robotics, weather prediction, and even biology.


What Is a Diffusion Model?


Blue vase image undergoes degradation to noise and is then reconstructed, illustrating forward and reverse processes. Text labels steps.
AI image generated by Gemini

A diffusion model is a type of machine learning model that learns how to create data by reversing noise. Instead of generating output one token at a time (like many text models), diffusion starts with random noise and gradually turns it into something meaningful, like an image.


A simple way to think about it:


  • Forward process: take a real image and add noise again and again until it becomes pure static

  • Reverse process: train a model to remove that noise step-by-step until a clean image appears


So diffusion is like a noiser + denoiser system:


  • Noiser: easy (we can add noise anytime)

  • Denoiser: hard (needs training to learn how to reverse noise)


Once trained, the denoiser can start from random noise and create new outputs that look like real data.


Why Diffusion Stands Out in AI


Most AI models are learning “patterns in data,” but diffusion is especially good at:


  • working in very high-dimensional spaces (like images, video frames, 3D, motion)

  • learning with surprisingly small datasets in some cases

  • producing high-quality samples (sharp, realistic images and video)


That’s why diffusion became a big deal in image generation, and why it’s now spreading into other areas.


How Diffusion Works in Practice


Step 1: Add Noise (Forward Diffusion)


Start with a real data example, like an image. Add a little noise. Add more noise. Keep going. Eventually, the image becomes unrecognizable. At the end, it’s basically random static. This part is easy because adding noise is simple and controlled.


Step 2: Learn to Remove Noise (Reverse Diffusion)


Now flip the problem. Give the model a noisy image and ask it to predict how to move one step closer to the clean version. You do this many times across many images. Over training, the model gets better at “denoising,” and eventually it can generate entirely new samples by starting from noise.


The Noise Schedule: A Key Detail Many People Miss


A tricky but important concept in diffusion is the noise schedule (sometimes called the beta schedule).


At first, you might assume noise should be added in a simple linear way: a tiny bit each step, same amount every time. But that causes problems.

Why?


Because when the image is still mostly clean, tiny noise changes barely affect it. Then near the end, to reach full noise, you need very large changes in a short time.


That makes training unstable. A good noise schedule tries to make the difficulty more balanced across steps, so the model is not dealing with “almost no change” early and “huge change” late.


This is one reason diffusion research improved so much over the years. People found better schedules and training targets that are easier for the model to learn.


What the Model Predicts: Data, Noise, or “Velocity”


Prediction targets in diffusion models: three panels showing a cat's image denoising, noise isolation, and velocity prediction.
AI image generated by Gemini

Another big evolution in diffusion is what the model is trained to predict.

Early approaches often tried to predict the clean data directly. That’s hard.


Researchers found that it can be easier to predict:


  • the noise that was added, or

  • the direction that moves you from noisy → clean


This “direction” idea leads to a very clean and popular concept:


Flow Matching (Diffusion as a Straight Line)


A helpful mental model:


Traditional diffusion is like walking from point A to point B in a zig-zag path.Flow matching says: “Why not take the straight path?”


So instead of learning every tiny step, the model learns a global direction (often described as velocity) that points from noise toward the data. That can make training simpler and more stable.


The big point for readers who don’t want math: Diffusion got easier to train because researchers found better training objectives. Same concept, better learning target.


Why Diffusion Feels Different from “One Token at a Time” AI


A lot of people know AI through text models that generate one token at a time.


That’s useful, but it has limits:


  • It moves forward step-by-step

  • It usually does not revise earlier output

  • It often feels “locked” into its first direction


Diffusion works differently:


  • It builds an output gradually

  • It refines the result repeatedly

  • It uses randomness as part of the process


This matters because many real-world problems are not naturally “token-by-token.” Images, motion, physical control, and planning often require refinement.

That’s why diffusion is becoming more popular outside of image generation.


Where Diffusion Is Used Today


Diffusion started in images, but it has expanded a lot. Here are major application areas where diffusion is being actively used or explored:


1. Image Generation


This is the most well-known use. Diffusion models can generate realistic images from noise, often guided by text prompts.


2. Video Generation


Video can be treated like “a sequence of images,” but harder because of motion and consistency. Diffusion approaches have become common in video generation because they handle gradual refinement well.


3. Robotics and Control


Robots need to produce actions in complex spaces: arm movements, grasping, walking, manipulating objects. Diffusion can be used to learn action policies (how to move) by sampling possible actions and refining them. This is a big reason people connect diffusion to the future of home robots.


4. Weather Forecasting


Weather is a high-dimensional prediction problem. Diffusion can be used to sample likely future states and improve forecast accuracy.


5. Biology and Chemistry


Protein structure and molecular interactions are also high-dimensional. Diffusion can help generate or refine candidate structures. The main common theme: Diffusion is strong when you need to map complex inputs to complex outputs, and you want a system that can refine results.


Why Researchers Care: The “Squint Test” for Intelligence


Some researchers use a simple idea when judging whether a model’s approach “looks like” intelligence. It’s not about copying the human brain perfectly. It’s about whether the core behavior passes a rough check.


Diffusion has two properties that many people think matter for intelligent systems:


  1. Randomness is built in - Biology uses randomness all the time: noisy neurons, imperfect signals, variation. Diffusion also uses noise as a feature, not a bug.


  2. Refinement, not one-shot output - Humans revise. We rethink. We change direction. Diffusion systems refine an output over multiple steps instead of committing instantly.


This doesn’t prove diffusion is the path to AGI. But it explains why many researchers see diffusion as more than “just image generation.”


The Real Tradeoff: Quality vs Speed


Progress bars with "Fewer Steps" and "More Steps" headings. Left: 85% load, low-res preview. Right: 25% load, high-res detail. Mountain backdrop.
AI image generated by Gemini

One clear downside of diffusion is that it can take many steps at inference time.

More steps often means better quality, but slower output.


Researchers work on “distillation” and other tricks to reduce steps (for example, compressing a 100-step process into 10 steps), but there’s usually a quality tradeoff.


For product teams, this matters a lot:


  • fewer steps = faster and cheaper

  • more steps = better output but higher cost and latency


This is one of the main engineering challenges when deploying diffusion models.


What This Means for Builders and Founders


If you’re building products in AI, diffusion changes your options.


If you train models


You should seriously evaluate diffusion-style training, even if your domain isn’t images. If you’re working with:


  • robotics

  • bio data

  • simulation outputs

  • video

  • forecasting

  • complex structured data


Diffusion can be a strong fit because it’s built for high-dimensional generation and refinement.


If you don’t train models


You should still update your expectations.


Diffusion-based systems have improved dramatically in the last few years, mostly from:


  • scaling (more data, more compute)

  • better training objectives

  • better architectures


That pattern is likely to repeat in new domains, not just images and video.


The Big Takeaway


Diffusion is not a niche technique. It’s a general method for learning and generating complex data by:


  1. adding noise

  2. learning how to reverse it

  3. refining outputs step-by-step


It started with images, but it’s spreading into robotics, weather, and biology because it matches the needs of those domains: high-dimensional prediction with iterative refinement.


For the AI world, diffusion is one of the strongest signs that “generating” doesn’t have to mean “one token at a time.” It can also mean building, correcting, and improving a result through a controlled process. And that’s why diffusion keeps showing up in research conversations and real products.


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