Incentives or Ontology? A Structural Rebuttal to OpenAI's Hallucination Thesis

arXiv — cs.LGThursday, December 18, 2025 at 5:00:00 AM
  • OpenAI's recent thesis posits that hallucinations in large language models (LLMs) stem from misaligned evaluation incentives, suggesting that improving benchmarks could mitigate these issues. However, a new paper challenges this view, arguing that hallucination is an inherent aspect of the transformer model's architecture, not merely an optimization failure. The authors assert that transformers create a pseudo-ontology based on linguistic co-occurrence, leading to fictional interpolations in sparse data regions.
  • This development is significant for OpenAI as it questions the foundational assumptions of their approach to AI model evaluation and training. If hallucinations are indeed structural rather than contingent, it may necessitate a fundamental rethinking of how LLMs are designed and assessed, potentially impacting their reliability and application in various fields.
  • The discourse surrounding AI transparency and accountability is intensifying, particularly as OpenAI introduces methods like 'confessions' to enhance model honesty. This reflects a broader industry trend towards addressing ethical concerns in AI, where the reliability of outputs and the models' ability to self-report errors are becoming critical factors in public trust and regulatory scrutiny.
— via World Pulse Now AI Editorial System

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