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Glossary · AI building blocks

LLM (large language model)

Also called large language model, foundation model.

Definition

An AI model trained on very large amounts of text that predicts the next piece of text, which lets it read, write and reason in language.

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What it is.

An LLM is trained to predict the next token in a sequence. Done at very large scale, that simple goal produces a model that can answer questions, summarise, translate, write code and follow instructions. Many current models also accept images, audio or files.

Apps use an LLM through an API or a self-hosted model. The model knows only what was in its training data and what you send in the context window, so most products add their own data with RAG and their own actions with tool calling.

Why it matters

LLMs make it practical to automate work that involves reading and writing: support, document handling, search, drafting and data extraction. They are also probabilistic, so the same input can give different outputs and they can be confidently wrong. Building with them means designing for checks, not just prompts.

Watch out

Common mistakes.

  1. 01

    Treating the model as a database of facts. Ground answers in your own data.

  2. 02

    Shipping without evals. Without them you cannot tell if a prompt or model change made things better or worse.

  3. 03

    Picking the biggest model by default. A smaller model is often good enough and cheaper per call.

Tools

Work it out with a tool.

Related

Related terms.

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