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What is a Large Language Model?

Before you can optimise for AI, you need to understand what you're optimising for. Large Language Models are the technology behind ChatGPT, Claude, Gemini, and every AI assistant your customers are using.

In this guide

  • What LLMs are and how they work
  • Why they matter for your brand
  • Key concepts: tokens, context, and parameters
  • The difference between models
8 min read

The Simple Explanation

A Large Language Model (LLM) is a type of artificial intelligence that has been trained on massive amounts of text to understand and generate human language. Think of it as a very sophisticated autocomplete system, one that has read billions of web pages, books, and documents.

When you ask ChatGPT a question, it's not searching the internet (usually). Instead, it's predicting what words should come next based on patterns it learned during training. This is a crucial distinction that affects how you should think about AI optimisation.

Input "What is the best CRM?"
LLM Processing Pattern Matching
Output "Based on your needs..."

LLMs predict the most likely response based on training data patterns

Key Concepts You Need to Know

Tokens

LLMs don't read words. They read tokens. A token is roughly 4 characters or 3/4 of a word. "ChatGPT" might be 2-3 tokens. Why does this matter? Because LLMs have token limits on how much they can process at once, and your content needs to efficiently convey information within these limits.

Context Window

The context window is the maximum amount of text an LLM can consider at once. GPT-4 can handle about 128,000 tokens (~96,000 words). Claude can handle up to 200,000 tokens. This affects how much of your content an AI can "see" when generating a response.

Parameters

When you hear "GPT-4 has over 1 trillion parameters," think of parameters as the model's "knowledge connections." More parameters generally mean the model can understand more nuanced patterns, but also requires more computing power.

Training Data

LLMs learn from the text they're trained on. If your brand is well-represented in high-quality content across the web, the model is more likely to have learned about you. This is the foundation of AI optimisation.

Crucially, training data is a snapshot in time. It's collected once and then remains fixed, often for a year or more until the next model version. If your brand wasn't visible in authoritative sources when that snapshot was taken, the AI simply won't know about you. You need to be in the game before the whistle blows.

Why This Matters for Your Brand

Understanding LLMs reveals why traditional SEO isn't enough anymore:

Key Takeaway

The key insight: LLMs don't search. They recall and generate.

Your content needs to be present in training data, structured for easy comprehension, and associated with clear entity relationships. This is fundamentally different from optimising for search engine rankings.

Technical Implementation

The way your content is technically structured affects how well LLMs understand it. Proper schema markup helps AI associate your brand with the right concepts.

Structured Data for AI

The Major LLMs You Should Know

Model Provider Knowledge Cutoff Used In
GPT-4.1 / GPT-4o OpenAI Jun 2024 ChatGPT, Microsoft Copilot
Claude 4 Sonnet/Opus Anthropic Mar 2025 Claude.ai, Amazon Bedrock
Gemini 2.5 Pro Google Jan 2025 AI Overviews, Gemini App
Sonar / Sonar Pro Perplexity Real-time Perplexity.ai
Mistral Large 3 Mistral AI ~2025 Le Chat, various apps
DeepSeek-V3 / R1 DeepSeek Dec 2024 DeepSeek Chat
Llama 4 Meta Aug 2024 Various applications

LLMs in Search vs LLMs doing Search

There's an important distinction between how LLMs appear in your customers' experience:

LLMs Powering Search Results

Google's AI Overviews use Gemini to summarise search results. The LLM synthesises what Google has already indexed, so your SEO directly impacts what appears.

LLMs With Web Search Tools

ChatGPT, Claude, and Perplexity can actively search the web when answering questions. The LLM decides when to search and which results to cite, combining training knowledge with live data.

Why this matters: For AI Overviews, traditional SEO is key. For LLMs with search, both training data presence and SEO matter, along with the LLM's judgment on which sources to trust.

We cover each of these in detail in the AI Models section, including their specific capabilities and optimisation considerations.

What's Next

Now that you understand what LLMs are, the next step is understanding how they learn. This will help you grasp why training data matters and how your content can become part of an AI's knowledge base.