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And we use "hallucination" because in the ancient times when generative AI meant image generation models would "hallucinate" extra fingers etc.

The behavior of text models is similar enough that the wording stuck, and it's not all that bad.



"hallucination" was coined in the context of text generating RNNs. Specifically in this blog post by Karpathy in 2015: https://karpathy.github.io/2015/05/21/rnn-effectiveness/


That was a misnomer—hallucination refers to perception, not generation. Completely misled an entire generation of people.




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