**Summary** 1. Disney's new AI image compression is built on the Stable Diffusion V1.2 model, producing ultra-realistic images at low bit rates. 2. The technology excels in recovering image details and reduces training costs without needing fine-tuning. 3. However, it poses a risk of generating hallucinated details, which could be problematic in applications requiring high accuracy. 4. Despite its potential pitfalls, this method outperforms traditional image compression techniques in most scenarios. 5. The technology is still developing, so further challenges and improvements are expected as it matures.

**Summary** 1. Disney has developed a groundbreaking AI image codec that vastly improves image compression efficiency. 2. The new technology blends quantization error with noise processing, resulting in superior image detail recovery at lower bit rates. 3. Practical tests show Disney’s codec beats traditional methods, even when competitors use twice the data. 4. The codec is incredibly fast, cutting processing times nearly in half. 5. While there are some minor imperfections, this technology is poised to make a significant impact in reducing data storage and transmission costs worldwide.