They don’t actually understand anything.

This isn’t correct and has been shown not to be correct in research over and over and over in the past year.

The investigation reveals that Othello-GPT encapsulates a linear representation of opposing pieces, a factor that causally steers its decision-making process. This paper further elucidates the interplay between the linear world representation and causal decision-making, and their dependence on layer depth and model complexity.

https://arxiv.org/abs/2310.07582

Sizeable differences exist among model capabilities that are not captured by their ranking on popular LLM leaderboards (“cramming for the leaderboard”). Furthermore, simple probability calculations indicate that GPT-4’s reasonable performance on k=5 is suggestive of going beyond “stochastic parrot” behavior (Bender et al., 2021), i.e., it combines skills in ways that it had not seen during training.

• https://arxiv.org/abs/2310.17567

We introduce SELF-DISCOVER, a general framework for LLMs to self-discover the task-intrinsic reasoning structures to tackle complex reasoning problems that are challenging for typical prompting methods. Core to the framework is a self-discovery process where LLMs select multiple atomic reasoning modules such as critical thinking and step-by-step thinking, and compose them into an explicit reasoning structure for LLMs to follow during decoding. SELF-DISCOVER substantially improves GPT-4 and PaLM 2’s performance on challenging reasoning benchmarks such as BigBench-Hard, grounded agent reasoning, and MATH, by as much as 32% compared to Chain of Thought (CoT).

• https://arxiv.org/abs/2402.03620

Just a few of the relevant papers you might want to check out before stating things as facts.