I used two words that probably don't exist anywhere in the training data and asked it (ChatGPT-3) to compare the weight of a kilogram of one vs an lb of the other. It initially gets it wrong, but when asked to show its work, it's suddenly able to decide that a kilogram of something is heavier than a pound of something. Using understanding or reasoning, or stochastic parroting; whatever you want to call it. I'm not claiming it's AGI, or sentient, but it's also clearly not just a Markov chain.