OpenAI, the creator of ChatGPT, acknowledged in its own research that large language models will always produce hallucinations due to fundamental mathematical constraints that cannot be solved through better engineering, marking a significant admission from one of the AI industry’s leading companies.

The study, published on September 4 and led by OpenAI researchers Adam Tauman Kalai, Edwin Zhang, and Ofir Nachum alongside Georgia Tech’s Santosh S. Vempala, provided a comprehensive mathematical framework explaining why AI systems must generate plausible but false information even when trained on perfect data.

“Like students facing hard exam questions, large language models sometimes guess when uncertain, producing plausible yet incorrect statements instead of admitting uncertainty,” the researchers wrote in the paper. “Such ‘hallucinations’ persist even in state-of-the-art systems and undermine trust.”

The admission carried particular weight given OpenAI’s position as the creator of ChatGPT, which sparked the current AI boom and convinced millions of users and enterprises to adopt generative AI technology.