

You’re right - in the NLP field, LLMs are described as doing “language understanding,” and that’s fine as long as we’re clear what that means. They process natural language input and can generate coherent output, which in a technical sense is a kind of understanding.
But that shouldn’t be confused with human-like understanding. LLMs simulate it statistically, without any grounding in meaning, concepts or reference to the world. That’s why earlier GPT models could produce paragraphs of flawless grammar that, once you read closely, were complete nonsense. They looked like understanding, but nothing underneath was actually tied to reality.
So I’d say both are true: LLMs “understand” in the NLP sense, but it’s not the same thing as human understanding. Mixing those two senses of the word is where people start talking past each other.
I think comparing an LLM to a brain is a category mistake. LLMs aren’t designed to simulate how the brain works - they’re just statistical engines trained on language. Trying to mimic the human brain is a whole different tradition of AI research.
An LLM gives the kind of answers you’d expect from something that understands - but that doesn’t mean it actually does. The danger is sliding from “it acts like” to “it is.” I’m sure it has some kind of world model and is intelligent to an extent, but I think “understands” is too charitable when we’re talking about an LLM.
And about the idea that “if it’s just statistics, we should be able to see how it works” - I think that’s backwards. The reason it’s so hard to follow is because it’s nothing but raw statistics spread across billions of connections. If it were built on clean, human-readable rules, you could trace them step by step. But with this kind of system, it’s more like staring into noise that just happens to produce meaning when you ask the right question.
I also can’t help laughing a bit at myself for once being the “anti-AI” guy here. Usually I’m the one sticking up for it.