What is an LLM? A five-minute explainer
The technology behind ChatGPT, Claude and Gemini, explained without the math.
8 minAs of Oct 2026
By the end of this guide
- Explain in plain words how an LLM builds answers by predicting the next word.
- Know what tokens and the context window are, and how they relate to pricing.
- Understand why hallucinations happen, and make checking answers a habit.
Who this is for
- Anyone puzzled by the jargon in AI news
- People who want to understand the basics before using AI at work
What you need
- Nothing but curiosity.
Key ideas
A machine that predicts what comes next
An LLM, or large language model, is a program trained on an enormous amount of text to predict what word comes next.
Just as you'd guess "nice" after "the weather today is really," it repeats that prediction over and over, very precisely, to produce sentences and answers.
Picking the word after "the weather today is really" (illustrative numbers) Next word Likelihood nice 62% hot 21% cold 11% sunny 6% It reads in tokens, not letters
LLMs break text into pieces called tokens. The amount they can read at once is the context window — the bigger it is, the longer the documents they can handle in one go.
When you use AI through an API, you're usually charged by the token too; chat app subscriptions are typically a flat monthly fee.
Convincing, but sometimes wrong
An LLM on its own doesn't look facts up; it predicts plausible next words. That's why it can state wrong information confidently — a hallucination.
Some services also search the web, but either way, make a habit of checking the source for important facts and figures.
Check it
- Double-check numbers, dates and quotes in an answer against the original source.
- Even when you ask for sources, open them yourself: models sometimes invent convincing-looking ones.
Getting good answers: give it context
LLMs work best with the information you give them. A prompt that spells out the situation, the goal and the format you want gets better answers.
Example prompt I'm new on the marketing team and need to explain what an LLM is to colleagues in under a minute at next week's meeting. Write a plain-language explanation that includes one analogy.
Example AI reply An LLM is a program that has read a huge amount of text and practiced guessing the next word in a sentence.
Think of your phone keyboard's next-word suggestions, scaled up enormously — precise enough to write whole sentences and paragraphs, not just suggest one word.
That's why it's good at writing and summarizing. But it continues text plausibly rather than looking facts up, so important details need checking.
Check it
- Check that it reads in under a minute and the analogy suits your audience. If it runs long, ask for a 30-second version.
Common mistakes
- Treating an LLM's answers as if they were search results
- Asking a one-line question with no context and concluding the answer is bad
References
- Introduction to Large Language Models — Google for Developers
- Glossary — Claude Platform Docs (Anthropic)
- Artificial Intelligence Risk Management Framework: Generative Artificial Intelligence Profile (NIST AI 600-1) — NIST