Microsoft Research has introduced Reducio-DiT, a solution aimed at enhancing video generation efficiency with advanced compression.This approach leverages an image-conditioned variational autoencoder (VAE) to significantly compress the latent space for video representation.Reducio-DiT achieves a 64-fold reduction in latent representation size while maintaining video quality, resulting in faster inference times.The compact latent space reduces computational requirements and makes high-resolution video generation more accessible.