Differential Attention (V2)

Softmax attention spreads a small amount of probability over every non-matching token. Over 100k tokens that noise adds up and drowns the signal. Differential Transformer (Ye et al., ICLR 2025) fixes it by computing attention as the difference of two softmaxes, subtracting the shared noise floor. DIFF V2 (Microsoft, January 2026) is the production-stack rewrite: matching decode latency to baseline Transformer, no custom kernels, FlashAttention-compatible. This lesson is V1 to V2 end-to-end, with a working toy implementation of the difference operation you can run in stdlib Python.