arXiv:2608.11249v1 Announce Type: new Abstract: We study the problem of lossless text compression, motivated by the rapid growth in the collection and storage of digital textual data - including plain text, source code, and structured formats such as XML - and by recent advances in neural language model-based compression. In particular, recent LLM-based approaches, whether built on symbol-ranking pipelines or paired with a statistical compressor, have demonstrated compression ratios significantly superior to general-purpose compressors such as zstd, gzip, or bzip on text and code. However, these neural approaches suffer from severe throughput limitations, making them not yet practically usable. For the first time in the context of lossless neural text compression, we introduce Diffusion Language Models (DLMs) as an alternative inference paradigm to autoregressive LLM-based approaches. We argue that replacing autoregressive LLMs with DLMs within the same compression framework could over...