Top LLM companies to watch in 2026

Generative AI

Key Facts & Industry Insights

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What is an LLM: Core Concepts

A Large Language Model (LLM) is a type of artificial intelligence system trained to understand and generate human language. At its core, an LLM is built on advanced algorithms that analyze patterns in massive amounts of text data, enabling it to predict words, generate sentences, and even carry out reasoning tasks.

Here are the core concepts that define how LLMs work:

  1. Training Data
    LLMs learn from vast amounts of text, everything from books, articles, websites, research papers, and more.
  2. Tokens and Probability
    Instead of processing entire sentences at once, LLMs break language into smaller units called tokens (which may be words, subwords, or characters).
  3. Neural Networks
    The “intelligence” of LLMs comes from deep neural networks, mathematical systems inspired by the human brain.
  4. Transformer Architecture
    The backbone of modern LLMs is the Transformer (introduced in 2017).
  5. Parameters (Scale of the Model)
    LLMs are defined by their size, measured in parameters (the internal variables that get adjusted during training).
  6. Fine-Tuning and Adaptation
    While base LLMs are trained on general data, they can be fine-tuned for specific industries or use cases.

How LLMs are Transforming Business and Enterprises

Changing the Way We Learn and Share Knowledge