arXiv:2510.04146v1 Announce Type: cross Abstract: Large Language Models (LLMs) have achieved state-of-the-art performance on a broad range of Natural Language Processing (NLP) tasks, including document processing and coding. Autoregressive Language Models (ARMs), which generate tokens sequentially conditioned on all previous tokens, have been the predominant paradigm for LLMs. However, while these networks have achieved high accuracy across a range of downstream tasks, they exhibit low arithmetic intensity due to the inherent sequential dependency with next-token prediction. Recently, Diffusion Language Models (DLMs) have emerged as a promising alternative architecture. DLMs generate output text in parallel, breaking the limitations of sequential dependency. However, the performance implications of DLMs relative to commonly deployed ARMs are not fully understood. In this work, we present a comprehensive performance study analyzing the performance characteristics of ARMs and DLMs, using both theoretical analysis and profiling data to characterize the trade-offs between these approaches. We illustrate that although DLMs exhibit higher arithmetic intensity compared to ARMs because of their capability to utilize parallelism across sequence lengths, they fail to scale effectively to longer contexts. We then explore DLMs with block-wise decoding, outlining how this approach allows for increased arithmetic intensity, while still scaling well to long contexts (similar to ARMs). We also show interesting trade-offs for batched inference, where we find that ARMs exhibit superior throughput, as they benefit more from parallelism across sequences in the batch. Finally, we highlight opportunities for accelerating DLM inference, and, in particular, highlight the importance of reducing the number of sampling steps for allowing open-source DLMs to provide improved latency relative to ARMs.