GRACE: Generation-aware latent compression for efficient video generation
Jiyoung Kim, Paul Hyunbin Cho, Jisu Nam, Donghoon Lee, Hyunsung Go, Yeonkyeong Lee, Hansaem Kim, Seungryong Kim
KAIST AI · Kakao Corp.
Published October 7, 2026 · on the feed October 8, 2026 · ▲ 77 · arXiv 2610.10524
The abstract
Highly compressed video autoencoders offer an effective way to accelerate video diffusion models, as the Diffusion Transformer (DiT) operates on far fewer tokens. However, such autoencoders are challenging to train, since a higher compression ratio degrades reconstruction quality and recovering it requires more channels, which is known to slow the convergence of the DiT. The compressed latent also differs from the one the DiT was trained on, so the pretrained DiT must be either retrained from scratch or adapted at considerable cost. Compressing the autoencoder the DiT was trained with appears to preserve compatibility, yet optimizing it for reconstruction alone still shifts the latent away from the distribution the DiT has learned. To address this, we propose Generation-Aware Latent Compression for Efficient Video Generation (GRACE), a two-stage framework that compresses a pretrained video autoencoder while keeping it compatible with the pretrained DiT. Specifically, we keep a frozen base latent from the pretrained encoder and learn a residual latent for the information lost under stronger compression, while aligning the compressed latent with the pretrained latent in the feature space of the frozen DiT so that the autoencoder is optimized for generation. We then adapt the DiT with lightweight fine-tuning and asymmetric denoising, where the base is denoised ahead of the residual. GRACE reduces the token count of Wan2.1-I2V-14B by 8x and its latency by 11.1x at 480x832x81, while matching the generation quality of the pretrained pipeline before compression on VBench.
The Brief
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Transcript
GRACE. Generation-aware latent compression for efficient video generation. By Jiyoung Kim and seven others, from KAIST AI and Kakao. Published on the seventh of October.
One effective way to speed up a video diffusion model is to compress its latent harder. With a highly compressed video autoencoder, the Diffusion Transformer, or DiT, operates on far fewer tokens. The trouble is that such autoencoders are hard to train. A higher compression ratio degrades reconstruction quality, and recovering that quality requires more channels, which is known to slow the convergence of the DiT.
There is a second cost. The compressed latent is not the one the DiT was trained on, so a pretrained DiT has to be either retrained from scratch or adapted at considerable expense. An apparent way out is to compress the very autoencoder the DiT was trained with, which looks as though it should preserve compatibility. But if that compression is optimized for reconstruction alone, the latent still drifts away from the distribution the DiT has learned.
Generation-Aware Latent Compression for Efficient Video Generation, GRACE for short, is a two-stage framework that compresses a pretrained video autoencoder while keeping it compatible with the pretrained DiT. The central move is in the name. The autoencoder is optimized for generation, not for reconstruction alone.
In the first stage, a frozen base latent is kept from the pretrained encoder, and a residual latent is learned on top of it to carry the information lost under stronger compression. At the same time, the compressed latent is aligned with the pretrained latent in the feature space of the frozen DiT. Alignment is measured where the generator sees it, which is what makes the autoencoder generation-aware.
In the second stage, the DiT itself is adapted, but only with lightweight fine-tuning, and with what the authors call asymmetric denoising. The base latent, the one inherited from the pretrained encoder, is denoised ahead of the residual that was learned for the extra compression.
The test case is Wan2.1-I2V-14B. GRACE cuts its token count by eight times, and its latency by eleven point one times, at a size of four hundred and eighty by eight hundred and thirty-two by eighty-one. At that speed-up, it matches the generation quality of the original pipeline before compression, as measured on VBench.
The framing is about where compatibility is lost. Retraining the DiT is expensive, and compressing the original autoencoder for reconstruction alone quietly moves the latent anyway. GRACE keeps the original latent as a frozen base, adds only what compression removed, and checks alignment through the eyes of the frozen DiT, so the generator is asked to adapt as little as possible.
Paper Quest · 7 chapters · about 40 min
Play this paper
Learn it by doing: make the calls the authors made, guess the result before you see it, and defend it in a viva graded on your own words. Chapter 1 is right here.
Chapter 1 🧩 · The problem
Fast video needs fewer tokens. Fewer tokens usually means a broken pipeline. Start there.
You run a large video diffusion model, and every clip is slow. The transformer at its heart pays for every token, and attention grows quadratically with how many there are.
The road ahead
- 1 · The problem ~6 min Fewer tokens would make a video generator fast, but squeezing its autoencoder harder breaks the pretrained transformer that was built around it.
- 2 · What came before ~3 min
- 3 · The key idea ~9 min Keep the pretrained encoder's latent as a frozen base, learn a small residual for what it loses, and align both inside the frozen DiT.
- 4 · Choose your own research ~3 min
- 5 · Build the method ~8 min Two stages: build a base-plus-residual latent aligned in the frozen DiT, then lightly fine-tune the DiT to denoise base before residual.
- 6 · The experiment ~6 min You’ll guess: Compressing the Wan2.1-I2V-14B pipeline while matching its VBench quality, how much did GRACE cut its latency?
- 7 · The viva ~5 min Three questions from the examiners, answered in your own words. Win it for the paper’s trophy.
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