What You Think Happens
When you use ChatGPT or Claude, it feels like a conversation. You say something, it responds, you follow up, it remembers. It feels like talking to someone who's paying attention.
That's an illusion. A well-designed one, but an illusion.
What Actually Happens
Every time you hit send, the application takes your entire conversation—every message you've sent, every response the model has given—and sends all of it to the model as one single block of text. The model reads the whole thing from the top, predicts what should come next, and sends that back. Then it forgets everything.
The model doesn't "remember" your last message. It re-reads the whole conversation every single time. There is no state. There is no memory. There is only the prompt.
What You See vs. What the Model Sees
Looks like a conversation with memory, right?
Anatomy of a Request
Let's look at what actually gets sent to the model when you type a message in ChatGPT and hit enter. The application constructs a payload that looks roughly like this:
Anatomy of a Request
Click each section to see what it does.
"You are a helpful assistant. Be concise..."
user: Can you help me... assistant: Of course!... user: I need...
user: I have 3 years of Python experience
assistant: ▊ (generating token by token...)
↑ This entire stack is sent to the model for every single response. Nothing is cached between requests. The model starts from zero each time.
That system prompt at the top? It's there every time. Your first message from 20 minutes ago? Still there. The model's own previous responses? Also there—the model is literally reading its own past output as part of the input. The whole thing is one continuous document, and the model's job is to write the next part.
The Context Window
This "one long prompt" has a size limit called the context window . It's measured in tokens (roughly ¾ of a word). Current models have context windows ranging from 128k to 200k tokens—that's roughly a 300-page book.
Sounds like a lot, but it fills up fast. Every message you send, every response the model gives, every image you attach—it all goes in the window. When it fills up, the oldest messages get dropped. The model doesn't know they ever existed.
Context Window Filling Up
Drag the slider to add messages and watch the context window fill.
Inference: Token by Token
Now here's where everything from the previous lessons comes together. When the model receives that payload—system prompt, conversation history, your latest message—it does the thing it was trained to do:
predict the next token
.
But it doesn't predict the whole response at once. It predicts one token, appends it to the payload, then predicts the next token, appends that, predicts the next, and so on. Each token is influenced by everything that came before it—your system prompt, your conversation history, and every token of the response generated so far.
Token-by-Token Generation
Hit generate, then hover over any generated token to see which parts of the input it's paying attention to. Brighter = more influence.
This is why LLMs sometimes start a sentence confidently and then paint themselves into a corner—each token commits the model to a direction, and there's no going back. It's also why longer responses tend to drift: the model is navigating a space of probabilities one step at a time, and small deviations compound.
Why This Matters for You
Understanding that there's no memory changes how you use these tools:
The model has no background knowledge about you or your project beyond what's in the current conversation. If you want it to know something, you need to say it.
Every back-and-forth adds to the payload. A chat with 50 messages means the model is reading through all 50 every time. Confusing instructions from message 3 are still in there, muddying message 51.
Since the model has no independent memory, you can edit previous messages and regenerate. The model won't know anything changed. You can gaslight an LLM because it has no memory to contradict you.
Starting a new chat isn't losing progress—it's clearing the noise. If a conversation has gone sideways, starting fresh with a better prompt is almost always more effective than trying to course-correct.
That last point is so important it's going to come up again in
Failures & Basins
. But first—now that you understand how these systems actually work, let's talk about how to
talk to them effectively
.
Module Complete
This concludes Module 1: What the Hell is Going On? You now know more about how LLMs work than most people who use them every day.