Why language models hallucinate

What bothers me about the hot takes is the claim that “all models do is hallucinate.” That collapses the distinction entirely. Yes, models are just predicting the next token—but that doesn’t mean all outputs are hallucinations. If that were true, it’d be pointless to even have the term, and it would ignore the fact that some models hallucinate much less than others because of scale, training, and fine-tuning.

That’s why a careful definition matters: not every generation is a hallucination, and having good definitions let us talk about the real differences.

That is a problem for "Open"AI because they want to sell their products, and because they want to claim that LLMs will scale to superintelligence. Not for others.

"Bad" hallucinations come in different forms, and what the article describes is one of them. Not all of them come from complete uncertainty. There are also the cases where the LLM is hallucinating functions in a library, or they reverse cause and effect when summarising a complex article. Stuff like this still happen all the time, even with SOTA models. They do not happen because the model is bad with uncertainty, they have nothing to do with knowledge uncertainty. Esp stuff like producing statements that misinterpret causal relationships within text, imo, reveals exactly the limits of the architectural approach.