Don’t get me wrong, Keras is impressive, and Francois is impressive as well. But for insight on LLMs you should probably listen to people who specialize in them.
To be very reductive, an associative memory can hold a truth table. Put minimal state, IO and a loop around that and you have a universal Turing machine. Which is why the "it's just memory" or "it's just Markov chains" is so tedious - it says near nothing about the computational power of the system including the model.
There's plenty of reason, of course, to question to what extent we know the abilities of the models, but when people assume dismissing it as "memory" or "just statistics" or "just Markov chains" I usually take it as a signal they don't understand how few limitations that imposes.
If your memory is too bad, then you are either insane or in an advanced state of Alzheimer. If you have enough stable paths to lead a quasi-normal life, then you become an inventor or an artist; or something atypical.
Hallucination is the feature, not the bug.
Actual cognition is slow and expensive for us, and we try to use it as little as possible, filling in what we can with easy, associative, low energy, near instant stuff.
Therein lies the reason why AI can be considered a boon for us humans. If machines took over the mundane work that just drains our energy and doesn't add much value, we could finally have the time to actually do what they can’t - think deeply about stuff, with their help where we find our faculties lacking. Rocket for the mind, if you will, rather than a bicycle.