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> Everything is hallucinated, some word combinations coincide with reality but that’s a random occurrence.

This isn't accurate, these models are trained and tuned to be correct, it's not a random occurrence.

How is correctness guaranteed? The model has no understanding, just a statistical analysis.

Or are we speaking of higher probability for correctness?

I was on that side of the argument as well, but it seems that models can have emerging model states of a given situation