ChatGPT: What Most People Still Get Wrong About How It Works

ChatGPT: What Most People Still Get Wrong About How It Works

You’ve seen the screenshots. Maybe it’s a legal brief full of fake court cases or a recipe for "glue pizza" that went viral for all the wrong reasons. It’s easy to look at ChatGPT and think it’s either a magic crystal ball or a sophisticated liar. Neither is quite right. Honestly, after a few years of this tech being in the wild, we're still collectively struggling to understand that ChatGPT doesn't actually "know" anything in the way a human does. It’s a prediction engine.

Think of it like the world's most over-educated version of the autocomplete on your phone. When you type "How are," your phone suggests "you." ChatGPT does the same thing, just with billions of parameters and a terrifyingly vast library of human thought.

The "Stochastic Parrot" problem and why it matters

There’s a term linguists like Emily M. Bender and Timnit Gebru used in a famous 2021 paper: "Stochastic Parrots." It sounds fancy, but it basically means a system that haphazardly stitches together sequences of linguistic forms based on probabilistic information. It doesn’t have a soul. It doesn’t have a "gotcha" instinct. It’s just trying to find the most statistically likely next word (or "token") in a sentence.

When you ask ChatGPT a question, it isn't "searching" the internet in real-time unless you specifically use the browsing feature. Instead, it’s navigating a multi-dimensional map of language. If you ask it for the capital of France, "Paris" is the most mathematically probable answer based on its training data. But if you ask it for a 19th-century poem about a toaster, it has to hallucinate. It creates something that sounds like a poem because that's what the math dictates, even though toasters didn't exist then.

This is where people get burned. They treat it like a database. It's a processor, not a library.

LLMs aren't search engines

Google search is about retrieval. You type a query, and Google points you to a source. ChatGPT is about synthesis. It takes a massive pile of information—books, code, Reddit threads, scientific papers—and compresses it into a model that can mimic those styles.

Sam Altman, the CEO of OpenAI, has been pretty candid about the fact that these models are "tools, not creatures." Yet, we can't help but anthropomorphize them. When the bot says "I'm sorry, I can't do that," it isn't feeling bad. It's following a safety layer—a set of RLHF (Reinforcement Learning from Human Feedback) instructions—that tells it certain outputs are off-limits.

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Why the "hallucinations" won't just go away

People keep waiting for a version of ChatGPT that is 100% accurate. That might be a pipe dream. Because the model relies on probability, there is always a non-zero chance it will choose a word that sounds right but is factually wrong.

  • It's great at: Summarizing long documents, brainstorming marketing copy, or explaining complex physics like you're five.
  • It's risky for: Checking medical dosages, verifying legal citations, or getting news updates on events that happened ten minutes ago.

The irony? The better it gets at sounding human, the more we trust it. And the more we trust it, the more dangerous those small, probabilistic errors become.

How the training actually works (in plain English)

OpenAI didn't just give the bot a list of facts. They used a Transformer architecture. Essentially, the model was shown trillions of sentences with some words blocked out. It had to guess the missing words over and over. Every time it guessed right, the internal "weights" of the model were strengthened.

Imagine a massive board with billions of knobs. Every time the AI gets something right, the knobs are turned slightly. Eventually, the knobs are set in such a way that the model can generate coherent, seemingly brilliant essays on virtually any topic.

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But there’s a catch. The training data ends at a certain point. While newer versions have "browsing" capabilities, the core "brain" of the model is still a snapshot of the past. If you're using GPT-4o, you're interacting with a model that has been refined through massive amounts of human labeling. Real people sat in rooms and ranked different AI responses, telling the machine, "This one is helpful, this one is toxic, this one is a lie."

The hidden cost of "free" AI

We don't talk enough about the water. Or the electricity. Training a model like ChatGPT requires thousands of Nvidia GPUs running at full tilt for months. Microsoft, which hosts OpenAI’s workloads on Azure, has reported significant increases in water consumption for cooling these data centers.

There's also the human cost. Much of the data labeling—the grunt work of making the AI "polite"—has historically been outsourced to workers in countries like Kenya. These workers often had to read through the darkest corners of the internet to flag violent or disturbing content so the AI would learn to avoid it. It’s not just code; it’s a system built on top of human labor and massive physical resources.

Prompt engineering is mostly a myth

You’ve probably seen the "Top 50 Prompts to Become a Millionaire" threads on X (formerly Twitter). Most of that is snake oil.

The truth is that ChatGPT is getting better at understanding natural language. You don't need a secret "jailbreak" code to get good results. You just need to be specific. Instead of saying "Write a blog post," try saying "Write a 500-word blog post about sourdough starters for a beginner audience, using a humorous tone and focusing on the importance of ambient temperature."

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The more context you give, the less the AI has to "guess" or "hallucinate" to fill in the gaps.

The shift from "doing" to "editing"

The real value of ChatGPT in 2026 isn't in letting it do your work. It's in using it as a first draft.

  1. Give it your messy notes and ask it to find the three most important themes.
  2. Paste a long, boring email and ask it to rewrite it so you don't sound like an "annoyed boss."
  3. Use it to write "boilerplate" code that you’d usually have to look up on Stack Overflow.

But you have to be the editor. If you publish something straight from the bot, it’s usually obvious. There’s a specific "AI cadence"—sentences that are all roughly the same length, a tendency to use words like "tapestry" or "delve," and a weirdly over-earnest tone that feels... off.

What’s coming next?

We are moving toward "Agents." Right now, you talk to ChatGPT, it talks back, and the interaction ends. The next phase is the AI actually doing things. Imagine telling the bot, "Plan my trip to Tokyo," and it doesn't just give you a list of hotels; it actually goes to the sites, checks your calendar, and drafts the bookings.

This requires a level of reliability that isn't quite there yet. If the bot "hallucinates" a flight time, you're stranded. This is why the integration of "Reasoning" models (like the o1 series) is so important. These models are designed to "think" before they speak, running internal checks to verify their own logic.

Actionable Next Steps

If you want to actually get the most out of ChatGPT without falling into the common traps, change how you interact with it starting today.

  • Stop asking for facts, start asking for frameworks. Instead of "When was the Magna Carta signed?" (which you can Google), ask "Give me three different ways to explain the significance of the Magna Carta to a high schooler."
  • Use the "Reverse Prompt" technique. Tell the AI: "I want you to write a marketing plan for a new brand of coffee. Before you start, ask me 10 questions about the business so you have all the context you need." This forces the AI to stop guessing.
  • Always verify "Niche" info. If the AI gives you a legal citation, a medical study, or a specific piece of code from a library that was released last week, verify it. Use a search-connected tool like Perplexity or ChatGPT's own "search" feature to find the original source.
  • Check the "Temperature." While you can't easily change the temperature (randomness) in the basic chat interface, you can tell the bot: "Be as literal and factual as possible. Do not use creative flourishes." It actually helps.

The goal isn't to replace your brain. It's to outsource the boring parts so you can spend your time on the parts that require actual human judgment and creativity. We're still in the "awkward teenager" phase of AI. It’s smart, it’s confident, and it’s frequently wrong. Treat it accordingly.