My best understanding/explanation of LLM tools is "plausible extension of a context"
That is, you have some context, ie the prompt and any other text, and the LLM produces a plausible continuation or alteration of that prompt and text.
My intuition leads me to a thought like: To progress, the context must compress into a fractal representation.
I feel very confident that someone smarter and MUCH better paid than me is already working on this.