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FUNDAMENTALS · MODULE 01

AI
VOCABULARY

25 essential terms across three tiers. Each one comes with an ELI5 (Explain Like I'm 5) simple breakdown, the real definition, practical context, and products you can try today.

BASIC · 14 TERMS

Core concepts everyone should know before using any AI tool. To make these basic concepts stick, we'll be using an analogy of a robot student going to school {0_0}

#TermELI5 — 'Robot Student Analogy'DefinitionUsageProducts
01Artificial Intelligence (AI)A robot... {0_0} "beep boop" — a computer that can do similar things that a human brain can, like recognizing pictures, understanding language, or making decisions.A broad field of computer science focused on building systems capable of performing tasks that typically require human intelligence, such as reasoning, learning, and perception.When someone says an app "uses AI," they mean it can learn patterns, make predictions, or generate content without being explicitly programmed for every scenario.
SiriGoogle AssistantTesla AutopilotNetflix Recommendations
02Machine Learning (ML)How the robot studies — This is the methodology behind how it learns. Instead of telling the robot student every rule, you give them a bunch of examples and let them figure out the rules on their own.A subset of AI where algorithms improve their performance on a task by learning from data, rather than following hard-coded instructions.Used when you have lots of data and want the system to find patterns — like detecting spam emails, recommending songs, or predicting prices.
Google ColabHugging FaceKaggleTensorFlow (Google)
03TrainingThe study session — the period where the robot student actually sits down and reviews examples. Once the study session is done, the brain is shaped and ready to perform.The computational process of optimizing a model's parameters by exposing it to large datasets, allowing it to learn patterns, relationships, and structures. Training can take days to months and requires significant compute resources.Before an AI can do anything useful, it needs to be trained. ChatGPT was trained on billions of web pages, books, and articles. Training is expensive — GPT-4 reportedly cost over $100M to train.
Common Crawl (web data)The Pile (open dataset)AWS/Google Cloud (compute)NVIDIA GPUs
04ModelThe robot's brain — it's what the robot student has after training is done. All those study sessions shaped how they think. The brain is trained and ready to answer questions.A trained AI system that has learned patterns from data and can make predictions or generate outputs. Models vary in size, architecture, and specialization.When people say "which model are you using?" they mean which trained AI system — GPT-4, Claude, Gemini, etc. Different models have different strengths, costs, and capabilities.
GPT (OpenAI)Claude (Anthropic)Gemini (Google)Llama (Meta)Mistral
05Large Language Model (LLM)A robot brain that specializes in reading and writing — this brain is powerful but language is its specialty and core strength.A type of neural network trained on massive text datasets that can generate, understand, and reason about human language. Measured in billions of parameters.The engine behind chatbots, writing assistants, and code generators. When you chat with ChatGPT or Claude, you're talking to an LLM.
Claude Sonnet 4.6 (Anthropic)GPT-5.2 (OpenAI)Gemini Flash (Google)Llama Maverick (Meta)
06ChatbotThe robot student's face and voice — the LLM is the brain inside, but the chatbot is what you actually see and talk to. Same student, just the outside versus the inside.Products like ChatGPT and Claude are chatbots — they're the most common way people interact with AI today. A chatbot is a software application designed to simulate conversation with human users, powered by an LLM under the hood.Used for customer support, personal assistants, education, and entertainment. Modern AI chatbots can handle complex, multi-turn conversations.
chatgpt.comClaude.aigemini.google.comCharacter.aiIntercom.com (b2b)
07TokenA word (or piece of a word) — it's the unit of measurement. The prompt, the context, the response — they're all measured in tokens.The basic unit of text that a language model processes. Text is split into tokens (words, subwords, or characters) before being fed into the model. Token count affects cost and context limits.LLMs charge per token and have token limits. GPT-4 can handle ~128K tokens of context. Knowing token counts helps you manage costs and fit within model limits.
OpenAI Tokenizer
08Prompt (aka Input)The exam question (measured in tokens) — it's what you put in front of the robot student. The better and clearer the question, the better the answer you get back.The input text provided to a language model that guides its response. Can include instructions, context, examples, or constraints.Every interaction with an AI chatbot starts with a prompt. Writing effective prompts (prompt engineering) is a key skill for getting useful AI outputs.
ChatGPTClaudeGeminiMidjourneyDALL-E
09ContextThe open-book notes (measured in tokens) — the extra information you lay out on your desk during an open-book test so the robot student can reference it while answering.The surrounding information provided alongside a prompt that helps the model understand the situation and generate a more relevant response.Adding context to your prompt improves accuracy. Instead of asking "What should I do?" you provide background: "I'm a beginner learning Python and I'm stuck on loops. What should I do?"
ChatGPTClaudeGeminiPerplexity
10Context WindowThe amount of desk space for notes + question + answer (measured in tokens) — limits how many open-book notes you can lay out at once. A bigger desk fits more context. When it's full, the oldest pages fall off the edge.The maximum number of tokens a model can process in a single interaction, including both the input prompt and the generated output.If your context window is 128K tokens, you can paste in an entire book and ask questions about it. Smaller windows mean you need to be more selective about what you include.
Claude (200K tokens)GPT-4 Turbo (128K)Gemini 1.5 Pro (1M tokens)Llama 3 (8K–128K)
11InferenceThinking through the answer — the robotstudent reads the question and the open-book notes, then reasons through what they know to figure out the best answer.The process of a trained model taking in inputs and context, then reasoning through its learned parameters to produce an output. This is the operational phase, as opposed to the training phase.Every time you send a message to ChatGPT, that's an inference call. Inference speed and cost are major factors in deploying AI at scale.
ChatGPTClaudeGeminiPerplexity
12Response (aka Output)The robot's answer to the test question — what the robot student writes down after thinking it through. The inference is the thinking, the response is what you get back.The text, code, or content generated by a model after processing the input prompt and context through inference. Responses vary in length, quality, and format depending on the model and prompt.When ChatGPT replies to your message, that reply is the response. Response quality depends on prompt clarity, context provided, and model capability. Responses are measured in tokens and factor into cost.
ChatGPTClaudeGeminiCopilotPerplexity
13HallucinationConfidently writing a wrong answer — the robot student doesn't know the answer, so their brain fills in the gaps with something that sounds right instead of saying "I don't know."When a language model generates text that is factually incorrect, fabricated, or inconsistent with reality, despite sounding plausible and confident.A major limitation of LLMs. Always fact-check AI-generated content, especially for research, medical, legal, or financial information. RAG and grounding techniques help reduce hallucinations.
All LLMs can hallucinatePerplexity (cites sources to reduce this)Google Gemini with Search Grounding
14AI EthicsThe code of conduct — guidelines for how the robot student should behave: don't cheat, don't be biased, don't hurt people, and be honest about what you are.A set of values, principles, and techniques (e.g., fairness, transparency, accountability, privacy) that guide the responsible development and use of AI systems to align with human rights and societal well-being.As AI becomes more powerful, ethical questions grow: Should AI make hiring decisions? Who's responsible when an AI causes harm? Should AI-generated content be labeled? Companies increasingly have AI ethics teams and guidelines.
Anthropic (Constitutional AI)OpenAI Safety TeamGoogle DeepMind EthicsPartnership on AIEU AI Act
01

Artificial Intelligence (AI)

▸ ELI5

A robot... {0_0} "beep boop" — a computer that can do similar things that a human brain can, like recognizing pictures, understanding language, or making decisions.

+
▸ REAL DEFINITION

A broad field of computer science focused on building systems capable of performing tasks that typically require human intelligence, such as reasoning, learning, and perception.

▸ HOW / WHEN TO USE IT

When someone says an app "uses AI," they mean it can learn patterns, make predictions, or generate content without being explicitly programmed for every scenario.

▸ REAL-WORLD PRODUCTS
SiriGoogle AssistantTesla AutopilotNetflix Recommendations
02

Machine Learning (ML)

▸ ELI5

How the robot studies — This is the methodology behind how it learns. Instead of telling the robot student every rule, you give them a bunch of examples and let them figure out the rules on their own.

+
▸ REAL DEFINITION

A subset of AI where algorithms improve their performance on a task by learning from data, rather than following hard-coded instructions.

▸ HOW / WHEN TO USE IT

Used when you have lots of data and want the system to find patterns — like detecting spam emails, recommending songs, or predicting prices.

▸ REAL-WORLD PRODUCTS
Google ColabHugging FaceKaggleTensorFlow (Google)
03

Training

▸ ELI5

The study session — the period where the robot student actually sits down and reviews examples. Once the study session is done, the brain is shaped and ready to perform.

+
▸ REAL DEFINITION

The computational process of optimizing a model's parameters by exposing it to large datasets, allowing it to learn patterns, relationships, and structures. Training can take days to months and requires significant compute resources.

▸ HOW / WHEN TO USE IT

Before an AI can do anything useful, it needs to be trained. ChatGPT was trained on billions of web pages, books, and articles. Training is expensive — GPT-4 reportedly cost over $100M to train.

▸ REAL-WORLD PRODUCTS
Common Crawl (web data)The Pile (open dataset)AWS/Google Cloud (compute)NVIDIA GPUs
04

Model

▸ ELI5

The robot's brain — it's what the robot student has after training is done. All those study sessions shaped how they think. The brain is trained and ready to answer questions.

+
▸ REAL DEFINITION

A trained AI system that has learned patterns from data and can make predictions or generate outputs. Models vary in size, architecture, and specialization.

▸ HOW / WHEN TO USE IT

When people say "which model are you using?" they mean which trained AI system — GPT-4, Claude, Gemini, etc. Different models have different strengths, costs, and capabilities.

▸ REAL-WORLD PRODUCTS
GPT (OpenAI)Claude (Anthropic)Gemini (Google)Llama (Meta)Mistral
05

Large Language Model (LLM)

▸ ELI5

A robot brain that specializes in reading and writing — this brain is powerful but language is its specialty and core strength.

+
▸ REAL DEFINITION

A type of neural network trained on massive text datasets that can generate, understand, and reason about human language. Measured in billions of parameters.

▸ HOW / WHEN TO USE IT

The engine behind chatbots, writing assistants, and code generators. When you chat with ChatGPT or Claude, you're talking to an LLM.

▸ REAL-WORLD PRODUCTS
Claude Sonnet 4.6 (Anthropic)GPT-5.2 (OpenAI)Gemini Flash (Google)Llama Maverick (Meta)
06

Chatbot

▸ ELI5

The robot student's face and voice — the LLM is the brain inside, but the chatbot is what you actually see and talk to. Same student, just the outside versus the inside.

+
▸ REAL DEFINITION

Products like ChatGPT and Claude are chatbots — they're the most common way people interact with AI today. A chatbot is a software application designed to simulate conversation with human users, powered by an LLM under the hood.

▸ HOW / WHEN TO USE IT

Used for customer support, personal assistants, education, and entertainment. Modern AI chatbots can handle complex, multi-turn conversations.

▸ REAL-WORLD PRODUCTS
chatgpt.comClaude.aigemini.google.comCharacter.aiIntercom.com (b2b)
07

Token

▸ ELI5

A word (or piece of a word) — it's the unit of measurement. The prompt, the context, the response — they're all measured in tokens.

+
▸ REAL DEFINITION

The basic unit of text that a language model processes. Text is split into tokens (words, subwords, or characters) before being fed into the model. Token count affects cost and context limits.

▸ HOW / WHEN TO USE IT

LLMs charge per token and have token limits. GPT-4 can handle ~128K tokens of context. Knowing token counts helps you manage costs and fit within model limits.

▸ REAL-WORLD PRODUCTS
OpenAI Tokenizer
08

Prompt (aka Input)

▸ ELI5

The exam question (measured in tokens) — it's what you put in front of the robot student. The better and clearer the question, the better the answer you get back.

+
▸ REAL DEFINITION

The input text provided to a language model that guides its response. Can include instructions, context, examples, or constraints.

▸ HOW / WHEN TO USE IT

Every interaction with an AI chatbot starts with a prompt. Writing effective prompts (prompt engineering) is a key skill for getting useful AI outputs.

▸ REAL-WORLD PRODUCTS
ChatGPTClaudeGeminiMidjourneyDALL-E
09

Context

▸ ELI5

The open-book notes (measured in tokens) — the extra information you lay out on your desk during an open-book test so the robot student can reference it while answering.

+
▸ REAL DEFINITION

The surrounding information provided alongside a prompt that helps the model understand the situation and generate a more relevant response.

▸ HOW / WHEN TO USE IT

Adding context to your prompt improves accuracy. Instead of asking "What should I do?" you provide background: "I'm a beginner learning Python and I'm stuck on loops. What should I do?"

▸ REAL-WORLD PRODUCTS
ChatGPTClaudeGeminiPerplexity
10

Context Window

▸ ELI5

The amount of desk space for notes + question + answer (measured in tokens) — limits how many open-book notes you can lay out at once. A bigger desk fits more context. When it's full, the oldest pages fall off the edge.

+
▸ REAL DEFINITION

The maximum number of tokens a model can process in a single interaction, including both the input prompt and the generated output.

▸ HOW / WHEN TO USE IT

If your context window is 128K tokens, you can paste in an entire book and ask questions about it. Smaller windows mean you need to be more selective about what you include.

▸ REAL-WORLD PRODUCTS
Claude (200K tokens)GPT-4 Turbo (128K)Gemini 1.5 Pro (1M tokens)Llama 3 (8K–128K)
11

Inference

▸ ELI5

Thinking through the answer — the robotstudent reads the question and the open-book notes, then reasons through what they know to figure out the best answer.

+
▸ REAL DEFINITION

The process of a trained model taking in inputs and context, then reasoning through its learned parameters to produce an output. This is the operational phase, as opposed to the training phase.

▸ HOW / WHEN TO USE IT

Every time you send a message to ChatGPT, that's an inference call. Inference speed and cost are major factors in deploying AI at scale.

▸ REAL-WORLD PRODUCTS
ChatGPTClaudeGeminiPerplexity
12

Response (aka Output)

▸ ELI5

The robot's answer to the test question — what the robot student writes down after thinking it through. The inference is the thinking, the response is what you get back.

+
▸ REAL DEFINITION

The text, code, or content generated by a model after processing the input prompt and context through inference. Responses vary in length, quality, and format depending on the model and prompt.

▸ HOW / WHEN TO USE IT

When ChatGPT replies to your message, that reply is the response. Response quality depends on prompt clarity, context provided, and model capability. Responses are measured in tokens and factor into cost.

▸ REAL-WORLD PRODUCTS
ChatGPTClaudeGeminiCopilotPerplexity
13

Hallucination

▸ ELI5

Confidently writing a wrong answer — the robot student doesn't know the answer, so their brain fills in the gaps with something that sounds right instead of saying "I don't know."

+
▸ REAL DEFINITION

When a language model generates text that is factually incorrect, fabricated, or inconsistent with reality, despite sounding plausible and confident.

▸ HOW / WHEN TO USE IT

A major limitation of LLMs. Always fact-check AI-generated content, especially for research, medical, legal, or financial information. RAG and grounding techniques help reduce hallucinations.

▸ REAL-WORLD PRODUCTS
All LLMs can hallucinatePerplexity (cites sources to reduce this)Google Gemini with Search Grounding
14

AI Ethics

▸ ELI5

The code of conduct — guidelines for how the robot student should behave: don't cheat, don't be biased, don't hurt people, and be honest about what you are.

+
▸ REAL DEFINITION

A set of values, principles, and techniques (e.g., fairness, transparency, accountability, privacy) that guide the responsible development and use of AI systems to align with human rights and societal well-being.

▸ HOW / WHEN TO USE IT

As AI becomes more powerful, ethical questions grow: Should AI make hiring decisions? Who's responsible when an AI causes harm? Should AI-generated content be labeled? Companies increasingly have AI ethics teams and guidelines.

▸ REAL-WORLD PRODUCTS
Anthropic (Constitutional AI)OpenAI Safety TeamGoogle DeepMind EthicsPartnership on AIEU AI Act
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