How ChatGPT Works – A Deep Technical Dive
Have you ever asked ChatGPT something — like "Summarize this news article," or "Explain AI like I'm 10" — and wondered, how is this even possible? Let's walk through how ChatGPT truly works — with real examples, visual metaphors, and detailed technical explanations.
ChatGPT doesn't understand language like humans. It generates text by predicting what comes next, one token at a time.
Example:
You type: "The Eiffel Tower is in" —
ChatGPT looks at all the training data it's seen — books, websites, conversations — and estimates what word is most likely to come next. It may think:
- "Paris" → 85% probability
- "France" → 10%
- "Europe" → 4%
- "a movie" → 1%
The highest probability token wins — so it outputs "Paris."
This process continues:
- "The Eiffel Tower is in Paris" → ✅
- Then it predicts the next token again: maybe a period (.), or "and," or another phrase — depending on context.
๐ข Technically, the model learns a probability distribution over sequences of tokens. At each step:
This is called auto-regressive generation — one token at a time, using all tokens before.
Tokens are chunks of words, not entire words or characters. For example:
- "ChatGPT is amazing" → ["Chat", "GPT", " is", " amazing"]
Each input and output are broken into tokens. GPT doesn't generate entire sentences at once — just one token at a time.
๐ง Why tokens? They strike a balance: fewer tokens than characters, more flexible than full words.
๐ Context window: ChatGPT remembers a fixed number of tokens:
- GPT-3.5: ~4,096
- GPT-4: ~8,000–32,000 (depends on variant)
Once you go beyond the context window, it forgets the earlier tokens — like a rolling memory.
ChatGPT runs on a type of deep neural network called a Transformer. Invented in 2017, it revolutionized AI.
๐ง 1. Embeddings: Giving Meaning to Words
What it is: Each word (token) is converted into a vector — a long list of numbers that captures meaning.
Analogy: Think of this like assigning GPS coordinates to every word. Similar words (like "Paris" and "London") will end up close to each other in this multi-dimensional map.
Example:
- "Paris" → [0.25, -0.11, ..., 0.87] (Vector of 768 or 2048+ numbers)
This helps the model "understand" that Paris is a place, just like New York or Tokyo.
๐ฏ 2. Self-Attention: Context-Aware Focus
What it is: This lets the model decide which words in the sentence are important — and how much they should influence the current prediction.
Analogy: When reading the sentence:
"The cat that chased the mouse was fast,"
You understand that "was" refers to "cat," not "mouse."
How it works: Every token computes its attention with every other token using:
- Q (Query)
- K (Key)
- V (Value)
The model multiplies these vectors, normalizes using √(dimension size), and generates attention scores — higher scores mean more relevance.
So, when predicting the word after "was," the model gives higher attention to "cat."
๐งช 3. Feedforward Layers: Refining the Understanding
What it is: After attention decides what's important, feedforward layers refine the info.
Analogy: Imagine reading a sentence, focusing on key words, and then pausing to think deeply about what it means.
Each vector is transformed like this:
- Output = ReLU (Wx + b)
Here:
- x is the input vector
- W and b are weights and biases the model learns
- ReLU is a non-linear activation that helps it generalize
This makes the model capable of nuanced understanding — e.g. knowing that "bark" means different things in "tree bark" and "dog bark."
๐ 4. Residual Connections + Layer Normalization: Keeping It Stable
What it is: To prevent vanishing gradients and unstable learning in deep networks, each layer adds the original input back in and normalizes it.
Analogy: Like re-reading the last sentence to make sure you didn't lose track.
This helps the model train deeper and faster without losing past understanding.
๐ End-to-End Flow — Let's Put It All Together!
Let's walk through an example with a real prompt:
๐ Prompt:
"The Eiffel Tower is in"
What Happens Behind the Scenes:
- Tokenization
→ Break into tokens: ["The", " Eiffel", " Tower", " is", " in"] - Embedding
→ Each token gets a high-dimensional vector (based on training data) - Positional Encoding
→ Adds info like "this is the 1st, 2nd, 3rd word..." - Transformer Layers (48+ times!)
Each layer does:- Compute self-attention → figure out what to focus on
- Pass through feedforward → transform meaning
- Apply residuals + layer norm → keep things stable
- Prediction
→ The model predicts the most likely next token: "Paris" - Loop
→ New prompt becomes: "The Eiffel Tower is in Paris" → predict next word
GPT doesn't see your sentence like a human. It sees patterns in numbers — but thanks to this layered structure, it can complete your thoughts with surprising fluency.
Every prediction is a mathematical dance of meaning, memory, and probability — played out over hundreds of Transformer layers.
That's how something as simple as "The Eiffel Tower is in..." becomes "Paris."
Training GPT involves three phases:
- Pretraining:
- Trained on a huge corpus (websites, books, code) to predict the next token.
- Objective: Minimize cross-entropy loss
- Supervised Fine-Tuning (SFT):
- Human annotators provide example dialogues.
- Model learns more structured, helpful responses.
- Reinforcement Learning with Human Feedback (RLHF):
- Two models are trained: the base model and a reward model.
- The base model generates outputs. The reward model scores them.
- GPT is then fine-tuned using Proximal Policy Optimization (PPO) to prefer higher-rated responses.
ChatGPT doesn't "remember" across chats — unless it's explicitly given memory (like in ChatGPT Pro).
Within a session, everything is stored in the context window.
Example: You: "What's the capital of France?" ChatGPT: "Paris" You: "And its population?" ← This relies on previous context.
If the context window is exceeded, the model may "forget" earlier parts.
ChatGPT can interface with image models, like DALL·E 3, to turn text prompts into visuals.
How It Works
- Tokenization: The prompt (e.g. "A panda surfing in space") is tokenized → converted to embeddings.
- Conditioning: These embeddings guide a diffusion model — trained to convert noise into meaningful images.
- Diffusion Process: The model starts with pure Gaussian noise (static). Over 20–50 steps, it learns to denoise it into a realistic image.
Math Behind It:
The process is trained to reverse a noise function. The generation step solves:
Model Used: U-Net + cross-attention layers conditioned on the prompt.
Example:
Prompt: "A futuristic library floating in clouds" → Image generated pixel by pixel by reversing the noise process.
DALL·E doesn't paint like a human — it mathematically interpolates what each patch should look like, step by step.
ChatGPT (GPT-4 or GPT-3.5) is not inherently aware of current events.
But with browsing enabled, it can pull in real-time info.
How:
- Your query → sent to Bing or another search engine
- The response is skimmed for trusted sources
- Key sentences are summarized
Example: You ask: "Who won the IPL final yesterday?" → ChatGPT browses → Finds ESPN or Cricbuzz → Extracts result → Summarizes answer
It Doesn't Browse Like You:
- No clicking
- No scrolling
- No loading ads
It reads the raw HTML/text and processes it very quickly.
Limitations:
- Might misread poorly formatted content
- May hallucinate if sources contradict
- Can't verify deep nuance like a human journalist
ChatGPT is incredibly powerful, but still fallible.
Reasons for Errors:
- Hallucinations:
- It may confidently make up facts.
- Cause: Over-generalization from training data.
- Stale Knowledge:
- Offline GPTs don't know recent events.
- Example: "Tell me who won the 2025 Nobel Prize" → No answer unless browsing is on.
- Context Limit:
- Long chats may exceed token limit → forgetting happens.
- Biases:
- If biased content was in training data, model might echo it.
Risk Scenarios:
- Medical advice: May offer outdated or unsafe info
- Legal queries: Lacks jurisdiction-specific nuance
- Code generation: Can return insecure or buggy code
Even though it's a token predictor, ChatGPT seems intelligent. Why?
Emergent Behaviour:
- With billions of parameters and terabytes of data, it captures deep statistical patterns
- It can compose essays, write poems, answer riddles — all via probability
System Prompt and Guardrails:
- OpenAI uses a system prompt to shape personality, tone, safety
- Example: "You are ChatGPT, a helpful assistant."
Examples of Smartness:
- Can do multi-step math (with help)
- Can translate Shakespearean English
- Can critique its own answers
ChatGPT is a statistical machine trained on massive data, optimized with human feedback, and guided by clever engineering.
It doesn't "think" — but its performance often feels magical.
The secret? Huge data + deep networks + careful tuning.
And now, you understand what's behind the curtain.