How Stable Diffusion-class systems generate: text encoder → denoising loop in latent space → decoder
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The loop is the cost
• Denoiser runs 20-50× per image
• Everything iterated lives in latent space
• Decoder runs exactly once
Why latents
• ~48× smaller than pixels
• Attention cost collapses super-linearly
• VAE decoder re-synthesizes texture
Steering
• Prompt enters via cross-attention
• CFG runs the denoiser 2× per step
• Encoder absent at generation time
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