LLM hallucinations explained through lossy compression in AI models

LLM Hallucinations Explained: Why AI Makes Things Up (Compression Theory)

19 April 2026
LLM Hallucinations Are Compression Artifacts — And That Explains Everything Imagine being handed 10 terabytes of text and being told to compress it into a 70-gigabyte file. Not just store it—but make it usable. At any moment, someone might ask a question, and you’d need to reconstruct a meaningful answer from that compressed version. Not perfectly. Not bit-by-bit. But close

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