1. How LLMs Predict Text

Imagine the world's most advanced autocomplete function. At its core, that's what a Large Language Model (LLM) is. These models are trained on a massive library of text and code from the internet—billions of books, articles, and websites.

This training doesn't teach the LLM to "think" or "understand" in a human sense. Instead, it teaches it to recognize incredibly complex patterns in language. It learns grammar, facts, reasoning styles, and even how to write code by calculating the statistical probability of which word is most likely to follow another.

When you give an LLM a prompt, it's not searching for an answer; it's starting a pattern and then predicting, one word at a time, what should come next to complete that pattern in the most statistically likely way. This simple process, scaled up with immense data and computing power, allows LLMs to generate remarkably coherent and complex text.

1. How LLMs Predict Text

LLMs build sentences one word at a time, always predicting the most likely next word. Click the buttons below to build a sentence and see this in action.

2. The Transformer Brain

The "engine" driving modern LLMs is an architecture called the Transformer. It revolutionized how machines process language by introducing a mechanism called self-attention.

The process begins with Embedding. The model can't read words, so it converts each word into a list of numbers—a vector—that represents its meaning. Think of it like a giant, multi-dimensional map where words with similar meanings, like "king" and "queen," are placed close together.

Next, Self-Attention allows the model to understand context. For every word in a sentence, it looks at all the other words and decides how important they are to understanding that specific word. For example, in "The bee landed on the flower because it wanted nectar," attention helps the model figure out that "it" refers to the "bee," not the "flower."

Physically, this process involves massive amounts of matrix mathematics. The "attention scores" are used to blend the numerical vectors of the words together, creating new vectors that are enriched with context. This happens across many stacked layers of digital "neurons," with each layer refining the sentence's meaning until a final, comprehensive understanding is formed. This is the key to understanding grammar and complex relationships within text.

2. From Sentence to Meaning: A Transformer's Journey

Let's walk through how a Transformer understands a sentence. It's a multi-step process. Click the button to advance through each step.

"The robot picked up the red ball."

Step 1: Embedding

Each word is converted into a numerical coordinate (an embedding) and placed in a "meaning map." Words with similar meanings land in similar neighborhoods.

Step 2: Self-Attention

The model calculates relationships. Hover over words to see their "attention" scores. Notice how "picked up" pays high attention to "robot" (who did it) and "ball" (what was picked up).

Step 3: Consolidation

The model now blends all word meanings and their contextual links together into a single, rich "summary of meaning." Think of it like a chef combining ingredients (words with context) to create a final dish (the sentence's complete meaning). Mathematically, this is done by adding multidimensional vectors.

Step 4: Using the Meaning

This final "summary of meaning" is a powerful tool. Because it captures *who* did *what* to *which object*, the LLM can now use this understanding to perform tasks like answering questions or translating.

3. What is a Hallucination?

A "hallucination" occurs when an LLM generates information that is factually incorrect, nonsensical, or not grounded in its training data. Think of it like an eager student who, instead of admitting they don't know an answer, confidently makes one up to be helpful.

This happens for several reasons: the model might have gaps in its knowledge, misinterpret a pattern in its data, or be prompted for information on a topic it wasn't trained on. Because its goal is always to complete the text pattern, it will fill in these gaps with plausible-sounding—but ultimately false—information.

Crucially, the LLM is not aware it is hallucinating. It presents incorrect facts with the same statistical confidence as correct ones, which is what makes them potentially misleading.

3. What is a Hallucination?

An LLM hallucinates when it states incorrect information as if it were a fact. It doesn't know it's wrong. Let's see this happen.

The LLM's Knowledge Base

  • The Sun is a star.
  • Mars is the fourth planet from the Sun.
  • The capital of France is Paris.
  • Barcelona is the most visited city in Spain.

Ask the LLM a Question

4. Preventing Hallucinations with RAG

One of the most powerful techniques to combat hallucinations is called Retrieval-Augmented Generation (RAG). It works like an "open-book test" for the LLM. Instead of forcing the model to rely only on what it has memorized from its training, RAG gives it a trusted document to consult for a specific query.

The process is simple but effective:

  1. Retrieve: When you ask a question, the system first searches an external, trusted knowledge base (like a company's private data or a curated set of facts) for relevant information.
  2. Augment: This retrieved information is then added to your original prompt, giving the LLM fresh, relevant context.
  3. Generate: The LLM is instructed to generate its answer based primarily on the newly provided context, not just its internal knowledge.

This grounds the model's response in verifiable facts, dramatically reducing the chance of hallucination and allowing it to answer questions about information it wasn't originally trained on.

4. Preventing Hallucinations with RAG

RAG prevents hallucinations by giving the LLM "just-in-time" facts. It retrieves info from a trusted source for a specific query, then uses it to generate an answer. This doesn't change the LLM's base knowledge.

LLM's Original Knowledge

  • The Sun is a star.
  • Mars is the fourth planet from the Sun.
  • The capital of France is Paris.
  • Barcelona is the most visited city in Spain.

Add External Document

Ask the LLM a Question

5. Controlling Creativity vs. Factuality

Not every task requires the same kind of response. Sometimes you need a factual, straightforward answer, and other times you want creative brainstorming. LLMs can be tuned to provide different kinds of output using a setting called temperature.

Low Temperature (e.g., 0.1 - 0.4): This makes the model more deterministic and focused. It will consistently choose the most common, statistically likely next word. Think of this as a conservative, by-the-book writer. This setting is ideal for tasks that require factual accuracy, like summarization or question-answering.

High Temperature (e.g., 0.7 - 1.0): This increases randomness, encouraging the model to choose less common, more "surprising" words. Think of this as a creative, brainstorming writer. While this can lead to more interesting and imaginative text, it also increases the risk of the output becoming nonsensical or factually incorrect. This setting is best for creative writing, marketing copy, or generating new ideas.

5. Controlling Creativity vs. Factuality

A parameter called "temperature" controls the randomness of an LLM's output. Low temperature is focused and factual, while high temperature is creative and diverse.

Prompt:

"Write a short sentence about the ocean."

Click "Generate" to see the output.

6. The LLM's Short-Term Memory

An LLM doesn't have a persistent memory like a human. Instead, it relies on a "short-term memory" known as the context window. This is the limited amount of text—including your prompts and its own previous responses—that the model can actually "see" at any given moment.

Think of it like a conversation where you can only remember the last few sentences spoken. As a conversation gets longer, the earliest parts "fall out" of this window. The LLM literally cannot access the information anymore; it has effectively "forgotten" it. Further questions about forgotten information can lead to hallucinations.

This is why an LLM might lose track of an instruction you gave it at the beginning of a long chat. Different models have different context window sizes (measured in "tokens," which are roughly words or parts of words), and expanding this window is a major area of ongoing research.

6. The LLM's Short-Term Memory

An LLM's "context window" is like its working memory. It can only pay attention to a limited amount of recent text. Information from earlier in a conversation can be "forgotten" once it leaves this window. Let's test this limit.

Conversation with the LLM

This LLM has a tiny context window: it can only "see" the last 3 messages.

Explanation

7. The Art of Prompting

Interacting with an LLM is a skill. The quality of your input (the "prompt") directly controls the quality of its output. Giving a vague prompt is like giving vague instructions to a new assistant—you'll get a vague result. A detailed, well-structured prompt provides the necessary guidance for a high-quality response.

A great prompt often contains four key ingredients:

  • ROLE: Tell the LLM who it should be. "Act as a professional marketing copywriter."
  • TASK: State the specific goal clearly. "Write a three-sentence marketing description for a new app."
  • CONTEXT: Provide all the necessary background details. 'The app is called "PhotoSphere" and it helps users organize photos with AI.'
  • FORMAT: Define the tone, style, or structure of the output. "The tone should be exciting and futuristic."

By combining these elements, you move from simply asking a question to skillfully directing the LLM to generate precisely what you need while minimizing hallucinations

7. The Art of Prompting

The quality of your prompt dramatically changes the quality of the LLM's response. A vague prompt gets a vague answer. A specific prompt gets a specific answer.

Your Goal:

Get a three-sentence marketing description for a new app, "PhotoSphere," which helps users organize photos with AI.

Vague Prompt

"Tell me about PhotoSphere."

Result:

Detailed Prompt

Your Constructed Prompt:

Add components to your prompt:

Result:

8. Fine-Tuning Models

If a base LLM is like a brilliant university graduate with broad knowledge, fine-tuning is like sending them to medical school to become a specialist. It's a process where you take a pre-trained model and continue its training on a smaller, narrower, high-quality dataset. This can make it less likely to hallucinate on your specific topic.

This specialized training adapts the model to a specific domain or task. For example, you could fine-tune a model on your company's internal documentation to create an expert chatbot, or on legal documents to build a tool for lawyers.

Pros of Fine-Tuning:

  • Expertise: Achieves high accuracy on specific, niche topics.
  • Style Adoption: Can learn to mimic a specific tone, voice, or format.
  • Efficiency: More efficient than training a model from scratch.

Cons of Fine-Tuning:

  • Cost & Effort: Requires a clean, curated dataset and significant computation.
  • Catastrophic Forgetting: The model can become *so* specialized that it "forgets" some of its original general knowledge and performs worse on unrelated tasks.

8. Fine-Tuning Demo

Here we'll fine-tune a general model to become a specialist on the fictional "Helios-7B Project" and see the pros and cons.

Fine-Tuning Dataset

Q: What is the Helios-7B project?
A: It's a next-generation solar probe designed to study the sun's corona.

Q: What is its primary instrument?
A: Its primary instrument is the Coronal Particle Analyzer (CPA).

General Purpose LLM

9. Chain-of-Thought Reasoning

Standard LLMs often struggle with multi-step problems because they try to predict the final answer directly, sometimes skipping crucial steps. Chain-of-Thought (CoT) prompting is a simple but powerful technique that dramatically improves an LLM's reasoning ability by asking it to "show its work."

Instead of just asking for the answer, you instruct the model to first break the problem down into a series of logical steps and explain them one by one. By externalizing this "thought process," the model is far more likely to follow the correct path and arrive at the right conclusion, much like a student solving a complex math problem on paper rather than in their head.

This technique makes the LLM's reasoning transparent and allows it to tackle more complex logic, math, and planning tasks than it otherwise could. Reasoning can help reduce hallucinations.

9. Chain-of-Thought Demo

See the difference in performance when an LLM is asked to think step-by-step.

The Problem:

A group buys 5 pizzas at $12 each and the delivery fee is $5. If 4 friends split the bill evenly, how much does each person pay?

Standard Prompt

"How much does each person pay?"

LLM Response:

Chain-of-Thought Prompt

"First, calculate the total cost of the pizzas. Second, add the delivery fee. Third, divide the total by the number of friends. Finally, state the cost per friend."

LLM Response:

10. AI Alignment (RLHF)

A raw LLM trained on the internet is good at predicting text, but it isn't inherently helpful, harmless, or honest. To make models safe and useful conversational partners, an "alignment" process is used, most commonly Reinforcement Learning from Human Feedback (RLHF).

Think of it as teaching the AI good manners. The process works in three main steps:

  1. Collect Human Feedback: The model generates several different responses to a variety of prompts. Human reviewers then read these responses and rank them from best to worst based on helpfulness and safety.
  2. Train a Reward Model: This human ranking data is used to train a separate AI, called a "reward model." The reward model's only job is to learn what humans prefer and predict how highly a human would "reward" any given response.
  3. Fine-Tune with Reinforcement Learning: The original LLM is then fine-tuned again. This time, it gets a "reward" from the reward model for generating responses that the reward model thinks a human would like. Over time, this reinforces the LLM to produce outputs that are better aligned with human values.

10. Human Feedback Demo

You are the AI Trainer. Read the responses to the prompt and provide feedack on an answer to help train the reward model.

The Prompt:

"Explain photosynthesis simply."

Response A

"Photosynthesis is a metabolic process wherein chloroplasts utilize light energy to catalyze the conversion of carbon dioxide and water into glucose and oxygen."

Response B

"Imagine a plant is like a tiny solar-powered chef. It uses sunlight as energy to cook up its own food (sugar) from water and a gas from the air called carbon dioxide."

Response C

"Photosynthesis is the process where plants breathe in oxygen and breathe out carbon dioxide, which is why they are green."

11. Bias & Safety in LLMs

Because LLMs learn from a vast snapshot of the internet, they inevitably learn the same biases and stereotypes that are present in human writing. The model doesn't know what "bias" is; it only knows patterns. If its training data frequently associates certain professions with certain genders, it will learn and reproduce that pattern.

This can lead to harmful, unfair, or stereotyped outputs. To combat this, an additional layer of safety training is applied. This often uses techniques like RLHF to teach the model to avoid generating biased, unethical, or unsafe content. These "guardrails" instruct the model to refuse inappropriate requests or to provide more neutral, inclusive answers.

The challenge of removing bias is ongoing and complex. A model might be safe in one context but still exhibit subtle biases in another. Responsible AI development requires a constant effort to identify and mitigate these issues.

11. Bias & Safety Demo

See how biases in training data can affect an LLM's output, and how a safety filter can help.

Biased Training Data Snippet

"The doctor arrived late, but he was a brilliant surgeon."

"She was an excellent nurse, always caring for her patients."

"When the engineer finished the plans, he was proud of the work."

"The CEO made a decision, and he stood by it."

"Her kindergarten students loved her."

Notice the data often associates doctors and engineers with male pronouns.

Model Prediction

Prompt: "The doctor walked into the room. ___ was about to see a patient."