ChatGPT Is a Blurry JPEG of the Web

I think this is quite a good analogy:

Think of ChatGPT as a blurry JPEG of all the text on the Web. It retains much of the information on the Web, in the same way that a JPEG retains much of the information of a higher-resolution image, but, if you’re looking for an exact sequence of bits, you won’t find it; all you will ever get is an approximation.

The lossy compression is what makes it appear smarter than it is:

Imagine what it would look like if ChatGPT were a lossless algorithm. If that were the case, it would always answer questions by providing a verbatim quote from a relevant Web page. We would probably regard the software as only a slight improvement over a conventional search engine, and be less impressed by it. The fact that ChatGPT rephrases material from the Web instead of quoting it word for word makes it seem like a student expressing ideas in her own words, rather than simply regurgitating what she’s read; it creates the illusion that ChatGPT understands the material.