Juan Ossa Anlatan LLC juan@anlatan.ai &Eren Doğan Anlatan LLC eren@anlatan.ai &Alex Birch Anlatan LLC &F. Johnson Anlatan LLC Abstract In this technical report, we document the changes we made to SDXL in the process of training NovelAI Diffusion V3, our state of the art anime image generation model. Diffusion based image generation models have been soaring in popularity recently, with a variety of