Synthesizing a bunch of stuff I've read here lately, it seems like if OpenAI and Claude have actually found product market fit (generating code) then the question of hallucination is going to get less attention in the future. If the real money is in code generation (where there is a relatively clear acceptance criteria of at least "it runs and does what I wanted as far as I can tell") then there doesn't seem to be a lot of juice in pulling ones hair out on hallucination of facts.

It seems like for agentic coding, just making sure the AI can find the relevant documentation to establish a ground truth is probably sufficient.

Note that I'm distinguishing here between hallucination of what you might call "free facts" and hallucination of material which deviates from what is in the context itself. The latter seems both a tractable problem and one which will improve coding agent functionality. But the former seems like its no longer on the critical path, probably because its hard.

> A shift is happening among major AI labs, who are becoming increasingly skeptical of endless parameter count and training data scaling. The limits of this paradigm were put on the world’s stage when Claude Fable 5 was restricted by the US government just three days after its release, marking the first US AI ban stemming from national security. One of the biggest models in the world was banned because a single jailbreak was too much of a risk.

Such a weird thing to start with. The legal status of Fable does not mean that it's not intelligent. If anything, the problem is the opposite, someone thinks it's too intelligent (and/or that Anthropic wouldn't share its last gen intelligent models on the terms the government demanded).

I wonder if this is what a “Minimally Viable LLM” looks like. I often wonder how much of an LLM do you need before you can just shove a bigger context Window and any dynamic knowledge content to it like a PDF or markdown file to give it knowledge outside of its training data. I feel like LLMs don’t need more data they just need to be refined.

Please don't editorialize titles unless the original title is misleading.

> Bigger is not better

The article uses the example of GLM being smaller than DeepSeek, yet better on hallucinations as "smaller can be good too"

But the GLM family itself is scaling up fast: GLM-5.x family is 754B, double the previous generation of GLM-4.x

> comes within just 4 points of GPT-5.5 and 9 points of Fable 5

9 percentage points IS a big difference

Purely anecdotal, but when OpenAI removed Codex-5.3 from the ChatGPT sub and forced me to move to GPT-5.5, the result was far worse than what I was enjoying with Codex.

And, of course, it was burning 10 times more tokens for this output.

GPT-5.5 must have serious issues; it is fast, but quality-wise, it is just not good. It read one LaTeX paper (which is not long) and can spell my name wrong. This is GPT-5.5-high.

The fact that a huge amount uf parameters may lead to worse hallucinations is something I didn't think of. Would this somewhat imply that DeepSeek V4 flash should be less prone tho these issues?