So in a way, hundreds of billions of possible images are all stored in the model (each a vector in multidimensional latent space) and turned into pixels on demand (drived by the language model that knows how to turn words into a vector in this space)
As it’s deterministic (given the exact same request parameters, random seed included, you get the exact same image) it’s a form of compression (or at least encoding decoding) too: I could send you the parameters for 1 million images that you would be able to recreate on your side, just as a relatively small text file.