-Stable Diffusion is a text-to-image *latent diffusion* model. It is called a latent diffusion model because it works with a lower-dimensional representation of the image instead of the actual pixel space, which makes it more memory efficient. The encoder compresses the image into a smaller representation, and a decoder to convert the compressed representation back into an image. For text-to-image models, you'll need a tokenizer and an encoder to generate text embeddings. From the previous example, you already know you need a UNet model and a scheduler.
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