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What is a large language model (LLM) and how does it work?

Clear explanation of what an LLM is, how it works internally and why models like GPT-4o, Claude Sonnet 4.5 or Gemini 2.0 are so capable. No unnecessary jargon.

May 18, 2026TheAISelect

The definition without the fluff

A large language model (LLM) is an artificial intelligence system trained on enormous amounts of text to predict and generate human language.

When you type a question to ChatGPT, Claude or Gemini, you're interacting with an LLM. The model doesn't "think" like a human — it calculates, with very high precision, which words or phrases are most likely to form a coherent and useful response to your input.


How does an LLM work internally?

Without getting into math: an LLM learns from patterns in text. A lot of text.

1. Training

The model is fed billions of pages of text: books, articles, websites, code, conversations. During training, it learns which words tend to go together, which structures are coherent and how to respond to different types of questions.

GPT-4o, Claude Sonnet 4.5 and Gemini 2.0 have been trained on amounts of data that exceed everything a human could read in thousands of lifetimes.

2. Tokens, not words

LLMs don't process whole words — they process tokens, which are fragments of text. The word "intelligence" might be 2 or 3 tokens. One token equals roughly 0.75 words in English.

The size of the context window (how many tokens it can "remember" in a conversation) determines how much text it can process at once: ChatGPT handles 128K tokens, Claude Pro up to 200K, Gemini up to 1 million.

3. Transformers: the key architecture

All modern LLMs are based on the Transformer architecture, published by Google in 2017. Transformers process text in parallel and use a mechanism called "attention" to understand which parts of the text are relevant to each other.

You don't need to understand the technical details to use them — but knowing they exist helps you understand why LLMs are so good at context and so bad at exact math.


Why do LLMs sometimes get things wrong?

Hallucinations

An LLM can generate text that sounds completely confident and plausible but is incorrect. This is called a hallucination. It's not a bug — it's a consequence of the prediction mechanism: the model generates what "sounds right", not what "is true".

That's why Perplexity and Gemini cite sources: they add a web search layer to anchor responses to verifiable data.

Training cutoff

LLMs have a training cutoff date — the point up to which data was processed. GPT-4o and Claude Sonnet 4.5 have an August 2025 cutoff. What happened after that, they don't know unless they can search the internet.

Math and exact reasoning

LLMs are poor at exact calculations. They're language prediction systems, not calculators. That's why ChatGPT Plus includes Code Interpreter: it delegates calculations to Python, which is precise.


The most important LLMs in 2026

ModelCompanyStrengths
GPT-4o / GPT-4.1OpenAIVersatility, multimodality, ecosystem
Claude Sonnet 4.5AnthropicWriting, reasoning, safety
Gemini 2.0 ProGoogleSearch, long context, Google integration
Llama 3.3MetaOpen source, no API cost
Mistral LargeMistral AIPrivacy, European use, efficiency
DeepSeek V3DeepSeekCode, reasoning, minimal API cost

LLM vs generative AI: are they the same thing?

Not exactly. Generative AI is the broad concept: systems that generate new content (text, images, video, audio). LLMs are a specific type of generative AI focused on text and language.

  • ChatGPT is an LLM (with added image and voice capabilities)
  • Midjourney is generative AI but NOT an LLM (it generates images, not text)
  • DALL-E 3 is image generative AI, integrated within ChatGPT

Why does knowing this matter?

Understanding what an LLM is makes you a better user of these tools:

  1. You know when to trust: if the model can't verify something, it may hallucinate it. Ask for sources when data matters.
  2. You know how to ask: LLMs respond better to clear instructions and abundant context. More context, better response.
  3. You know their limits: don't ask for exact calculations without Code Interpreter. Don't expect today's information if the model has no web access.

FAQ

Do I need to know how to code to use an LLM?

No. The interfaces of ChatGPT, Claude and Gemini are conversational — you write in natural language and the model responds. Programming is only necessary if you want to access models directly via API to build your own applications.

Which is the most powerful LLM in 2026?

It depends on the task. Claude Sonnet 4.5 is best for writing and reasoning. GPT-4o is the most versatile. Gemini 2.0 is best for up-to-date information. There's no single "best" — there's the best for each use case.

Do LLMs learn from my conversations?

By default, commercial models like ChatGPT or Claude may use your conversations to improve their future models, but you can turn this off in privacy settings. If you handle sensitive data, review the provider's privacy policy and consider using local models or privacy-focused options like Mistral.

Tags#llm#what-is#generative-ai#gpt#fundamentals