What is a large language model, actually?

What is a large language model, actually?
  • December 21, 2025
  • AI

If you’ve used ChatGPT, Claude, or Gemini lately, you’ve probably noticed they feel different than they did a year or two ago. They don’t just spit out answers instantly anymore; they often pause to “think” for a few seconds before responding. We’ve moved past the era of simple chatbots and into the age of the “reasoner.”

But what is a Large Language Model (LLM) at its core, and why has the way they work changed so much in late 2025? To understand what’s happening inside those digital brains, we have to look at how they were built and how they are evolving into something much more powerful than a fancy autocomplete.

The foundation: It’s all about patterns

At the most basic level, a large language model is a statistical engine trained on a massive amount of human text—books, code, websites, and conversations. Early LLMs worked primarily through “next-token prediction.” A “token” is just a chunk of text, like a word or a few characters. When you gave the model a prompt, it would look at the patterns it learned during training and calculate which token was most likely to come next, then the one after that, and so on.

This is why people often called them “stochastic parrots” or “glorified autocomplete.” They weren’t “thinking” in the human sense; they were just playing a very sophisticated game of “predict the next word.”

However, as models grew larger and the training data became more refined, something strange happened. They didn’t just get better at grammar; they started to “understand” the underlying logic of the information they were processing. They learned to code, solve math problems, and explain complex jokes. This led us to the frontier models we use today, like OpenAI’s GPT-5.2, Anthropic’s Claude 4.5, and Google’s Gemini 3 Pro.

The 2025 shift: From prediction to reasoning

The biggest breakthrough in the last year hasn’t been just “more data.” It’s a concept called test-time compute.

In the past, almost all the “intelligence” of a model was baked in during its initial training. Once the training was done, the model’s brain was essentially frozen. When you asked it a question, it used a fixed amount of effort to give you an answer, whether you asked for a cookie recipe or a proof of a mathematical theorem.

Today’s “reasoning” models are different. When you give them a difficult prompt, they use extra computational power at the moment of the request to think through the problem. They generate internal “thought tokens”—which you usually don’t see—to test different hypotheses, check for errors, and refine their logic before they show you the final result.

This is why your AI might “think” for 20 seconds before answering. It’s not just lag; it’s the model literally performing more work to ensure the answer is correct. This shift has made AI significantly more reliable for complex tasks like software engineering and scientific research.

The major players in the field

While there are dozens of AI companies, three “frontier” firms currently set the pace. As we head into 2026, the landscape looks like this:

  • OpenAI: Still the market leader with GPT-5.2. Their models are known for being highly capable “all-rounders” and power the ubiquitous ChatGPT service.
  • Anthropic: Their Claude 4.5 model is a favorite among power users and developers. It’s often cited for having a more “human” writing style and exceptional coding abilities through tools like Claude Code.
  • Google: With Gemini 3 Pro, Google has leveraged its massive infrastructure to create models that excel in “multimodality”—meaning they can process text, images, video, and audio with equal ease.

Beyond the big three, we’ve seen incredible innovation from “open-weight” models. Companies like DeepSeek (with their R1 model) and Meta (with Llama 4) provide the underlying code for their models to the public. This allows developers to run powerful AI on their own hardware, though some recent Meta releases have struggled to keep pace with the sheer reasoning power of the top-tier closed models.

Why “Large” matters

The “Large” in LLM refers to two things: the size of the dataset and the number of “parameters” in the model. Think of parameters as the tiny connections in a digital brain. While companies are getting more secretive about exact numbers, frontier models now have trillions of these connections.

This scale is what allows the model to capture the nuances of human language. It knows that the word “bank” means something different in “river bank” than in “investment bank” because it has seen those words in millions of different contexts.

The move toward AI agents

The most exciting trend for 2026 is the transition from AI chatbots to AI agents.

An LLM is a brain; an agent is that brain with hands. Because modern models are so good at reasoning, we can now give them “scaffolding”—software that allows them to use a web browser, run code, or manage your calendar. Instead of just writing an email for you, an agent can look at your previous threads, find a time that works for everyone, and send the invite itself.

What an LLM is not

Despite how smart they seem, it’s important to remember what these models aren’t. They aren’t “conscious” and they don’t have feelings or a soul. They are incredibly advanced mathematical models that are designed to be helpful.

They also aren’t perfect. Even the best reasoners can still “hallucinate”—AI slang for confidently stating something that isn’t true. This happens because the model is still ultimately predicting what a correct answer should look like, and sometimes the most “likely” sounding pattern is factually wrong.

As we move into 2026, understanding that these tools are partners in reasoning—rather than infallible oracles—is the best way to get the most out of them. Whether you’re using them to debug code or just to understand a complex news story, the era of the reasoning LLM has officially arrived.

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