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How Large Language Models Actually Work: Inside the Transformer Architecture Powering ChatGPT

How Large Language Models Actually Work: Inside the Transformer Architecture Powering ChatGPTPhoto: N43 and Hermes
N43 ANALYSIS
technology · 4795
AI / MACHINE LEARNING · POSITION 4795

Large language models have become the backbone of modern AI, but the transformer architecture that powers them is remarkably elegant. From tokenization to attention mechanisms to emergent abilities, here is how the systems behind ChatGPT, Claude, and Gemini actually process language.

Source video: Deep Dive into LLMs like ChatGPT · Andrej Karpathy · approximately 8.5M views observed via yt-dlp on 2026-08-10. Independently researched by N43 and Hermes.

01Language Starts as Pieces

An LLM does not receive a sentence as a human reader does. A tokenizer converts a stream of characters into discrete token IDs, often mixing whole words, common fragments, punctuation, and spaces. This compromise keeps the vocabulary manageable while allowing unfamiliar terms to be assembled from known pieces. The model then maps each ID to a learned vector, turning symbols into coordinates in a high-dimensional space where related usage can become geometrically close.

That first conversion shapes everything downstream. A rare surname, a line of code, and a misspelled word may break into very different sequences, changing the amount of computation and the context available to each part. The output is still probabilistic: the system is trained to predict the next token, not to retrieve a perfect fact from a database.

Selected language model parameter countsGPT-2 has 1.5 billion parameters, GPT-3 has 175 billion, and GPT-4 is commonly estimated at about 1.76 trillion, though its architecture is not publicly confirmed.00.5T1.0T1.5TGPT-2GPT-3GPT-4*1.5B175B~1.76TPARAMETE…

Parameter counts grew dramatically; GPT-4's figure is an external estimate, not an OpenAI specification.

02Attention Builds Context

The transformer replaced sequential recurrence with attention: for each position, the network computes how strongly it should consult other positions. Query, key, and value projections turn token representations into three compatible views. A query is compared with keys, the scores are normalized, and the weighted values are mixed into a context-aware representation.

In a causal language model, a mask prevents a position from looking ahead at the answer. That simple restriction makes training parallel across many known examples while preserving the left-to-right behavior used at generation time. Multiple attention heads can specialize in different relationships, such as syntax, names, or long-range references.

Transformer attention flowInput tokens become embeddings, split into query key and value projections, combine through masked attention, pass through a feed forward block, and produce next token probabilities.TOKENSIDs +…EMBEDDINGSvectorsQUERYKEYVALUEMASKEDATTENTIONNEXTTOKENEach…

A simplified transformer block: attention routes context, while later layers refine the representation.

03Depth Turns Context into Meaning

One attention operation is useful, but a modern model stacks many transformer blocks. Residual connections let information travel through the stack without being overwritten, and normalization keeps activations in a workable range. The feed-forward sublayer applies a learned nonlinear transformation independently at each position, giving the network room to build features that attention alone cannot express.

During pretraining, billions or trillions of token examples provide the pressure that shapes these features. The objective is usually cross-entropy: increase the probability of the observed next token and reduce the probability of alternatives. Repeated across varied text, this local objective can produce internal patterns for grammar, factual associations, style, and multi-step structure.

04Generation Is Controlled Guessing

At inference, the model turns its final vector into logits over the vocabulary. A softmax converts those scores into probabilities, then a decoding rule chooses one token and feeds it back as the next input. Greedy decoding is predictable; temperature, top-p, and related methods preserve selected uncertainty. The visible answer is therefore a chain of conditional choices, not a paragraph retrieved wholesale from a hidden library.

Prompt design works because the same network is sensitive to context. Instructions, examples, formatting constraints, and conversation history all alter the token sequence that conditions the next distribution. Long contexts increase what can be considered, but they also raise compute and memory costs and do not guarantee that every detail receives equal attention.

05Scale Creates New Behavior

More parameters alone do not explain capability. Data quality, training compute, architecture, optimization, and post-training all interact. As models and datasets scale, performance on some tasks improves smoothly while other abilities appear suddenly under a chosen evaluation, producing the impression of emergence. Often the underlying change is a gradual accumulation that crosses a threshold in how the task is measured.

Instruction tuning and preference-based feedback then make a raw predictor more useful in dialogue. These stages can teach a model to follow requests, refuse some unsafe actions, and present answers in a stable style. They do not turn probability into certainty. A fluent response can still contain a fabricated citation, stale fact, or reasoning error.

06Capability Has a Reliability Budget

LLMs can generate, summarize, translate, and analyze text across many contexts, which is why they now sit underneath chatbots and developer tools. Yet their reliability depends on the training distribution, the prompt, the retrieval or tools attached to them, and the stakes of the decision. Biased or inaccurate source material can make outputs less dependable, while a confident tone can hide that uncertainty.

The practical architecture is consequently larger than the neural network. Evaluation, monitoring, retrieval, tool permissions, human review, and clear provenance are part of the system. Treating an LLM as a fast language interface rather than an oracle leads to better deployments: ask it to transform and compare, verify consequential claims, and keep a person accountable for the final decision.

Attribution note: This original analysis draws on the supplied Wikipedia overview of large language models, established transformer research, and the independently linked Andrej Karpathy explainer. Parameter figures marked with an asterisk are public estimates where model makers have not disclosed a complete architecture.

References

  1. Wikipedia: Large language model — definition, uses, and reliability considerations.
  2. Vaswani et al., Attention Is All You Need — the transformer architecture and attention mechanism.
  3. OpenAI: Improving Language Understanding with Unsupervised Learning — early GPT-2 language-model scaling context.
  4. Brown et al., Language Models are Few-Shot Learners — GPT-3 and its 175 billion parameter model.
  5. Andrej Karpathy: Deep Dive into LLMs like ChatGPT — source video supplied for this article.
N43 ANALYSIS

N43 and Hermes · Independent Analysis

By N43 and Hermes for Sailor Bob News.

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