Laguna by Poolside vs Mercury Edit 2: Features, Pricing & Which Is Better (2026)
A side-by-side comparison of Laguna by Poolside and Mercury Edit 2 — features, pricing, and ideal use cases — to help you decide which AI tool fits your workflow.
Laguna by Poolside
Poolside
Poolside's family of open Mixture-of-Experts foundation models for agentic coding — XS.2 runs locally, M.1 reaches 72.5% on SWE-bench Verified.
Key features
- Two Model Sizes: Laguna XS.2 (33B total / 3B active) and Laguna M.1 (225B total / 23B active) target different latency and capability needs.
- Mixture-of-Experts Architecture: Routes each token through a subset of experts for efficiency at large scale.
- Local Deployment: XS.2 is small enough to run on a Mac with 36 GB of RAM via Ollama under an Apache 2.0 license.
- Strong SWE-bench Results: XS.2 hits 68.2% and M.1 reaches 72.5% on SWE-bench Verified.
- Bundled Coding Agent: Ships 'pool,' a lightweight terminal-based coding agent.
- Agent Client Protocol: Includes a dual ACP client-server used internally for agent RL training and evaluation.
Best for
- Local Agentic Coding: Running XS.2 on a laptop for private, offline code generation and editing.
- High-Capability Code Tasks: Using M.1 for harder, long-horizon software engineering work.
- Self-Hosted Deployments: Building on open weights to avoid third-party API dependencies.
- Research & Fine-Tuning: Adapting permissively licensed weights for custom coding workflows.
- Benchmarking: Evaluating agentic coding performance against SWE-bench Verified and Pro.
Mercury Edit 2
Inception Labs
Diffusion-native next-edit LLM for hosted edit prediction, code editing, and high-throughput classification by Inception Labs.
Key features
- Next-Edit Prediction: Provides cursor-aware, contextual edit suggestions (single-line and multi-line) that can produce multiple coordinated edits across a file to accelerate refactoring and inline code fixes.
- Diffusion-Native Inference: Uses diffusion modeling to generate tokens in parallel, delivering higher token throughput and improved controllability compared with autoregressive edit models.
- Hosted API Access: Available as a hosted Mercury API provider (no local GPU required) with simple API key authentication (MERCURY_AI_TOKEN / INCEPTION_API_KEY) for easy integration into editors, CLIs, and server workflows.
- Multi-Edit & Cursor Prediction: Supports multi-edit operations and cursor-position-aware predictions to enable precise edits and inline integrations in code editors and IDE plugins.
- High-Throughput Classification & Structured Output: Used as a fast classifier and structured-output generator (e.g., SQL generation, routing/classification tasks) in agent and orchestration stacks.
- Editor & CLI Integrations: Integrates with tools such as cursortab.nvim and Mercury CLI, enabling direct editor workflows and autonomous code-synthesis CLIs that coordinate planning, edits, and verification.
- Scalable Integration Patterns: Designed to fit into planner→edit→verify→runtime pipelines (as seen in Mercury CLI architecture), enabling coordinated multi-step code repair and synthesis workflows.
- Hosted HTTP API for next-edit / edit-prediction requests (model IDs: "mercury-edit", "mercury-2")
- Diffusion-native generation (simultaneous token generation for high throughput)
- Multi-line and multi-edit suggestion support
- Cursor-aware prediction (cursor position contextualization)
- High throughput — community reports >1000 tokens/sec for Mercury 2 in routing use-cases
- Works with OpenAI-compatible adapters but accepts provider-specific parameters (e.g., "diffusing")
- Can be used in editor integrations (e.g., cursortab.nvim) and CLIs (e.g., Mercury CLI)
- No local GPU required for hosted usage; local inference possible via alternate providers (e.g., sweep/llama.cpp) in some projects
Best for
- Inline code editing and refactoring inside editors (Neovim, VSCode plugins) where cursor-aware, multi-line edit suggestions speed up developer edits and large-scale refactors.
- Autonomous code synthesis via CLI: drive repair and synthesis flows (Mercury CLI) that plan edits, apply multi-edit patches, and verify results as part of CI or developer workflows.
- Router/classifier in agent stacks: fast complexity classification and structured text generation (e.g., SQL or routing labels) to delegate work to other agents or tools.
- Bulk codebase modernization: run next-edit predictions across repositories to automate API migrations, style updates, and repetitive code transformations at scale.
- Cursor-aware pair-programming assistance: provide precise inline suggestions and multi-edit proposals during interactive development sessions.
- High-throughput labeling and structured output generation for pipelines that need fast, cost-effective token generation and classification.
- Inline editor code and text edit suggestions and multi-edit transformations
- Autonomous code synthesis and repair via CLI orchestration (Mercury CLI)
- Router/classifier step in multi-model pipelines to generate SQL or structured text quickly
- Batch or programmatic next-edit workflows in developer tools and plugins
- Generating structured outputs (SQL, patches) where iterative function-calling is not required