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Chapter 1

Language Models: From Next-Token Prediction to Useful Systems

Chapter: Introduction, in Daniel Jurafsky and James H. Martin, Speech and Language Processing, 3rd edition draft, August 19, 2026.

Topics to learn

Page numbers refer to the linked chapter PDF.

FAQ

Does a next-token probability of 0.9 mean the statement is 90% true?

No. It is the model's probability for that continuation in that context. A familiar false claim can still get a high probability.

Do five labeled examples in a prompt fine-tune the model?

Not in an ordinary generation pass. The examples change the context. Fine-tuning is a separate procedure that updates parameters.

What scaling relation does this chapter state?

For a fixed compute budget, Hoffmann et al. found that the compute-optimal parameter count and token count both grow about as the square root of compute. Bigger is not free: inference cost and resource use rise too.

Is conversational grounding the same as retrieval grounding?

No. In this chapter, grounding is how people signal understanding or ask for clarification. Retrieval grounding, covered later, is about tying an answer to retrieved evidence.

What counts as an agent here?

An agent is a language model that can call other programs, observe the result, append that observation to its context, and loop. Mentioning a tool is not the same loop.

Why does the chapter object to saying a model understands?

Learn, think, and understand are convenient shorthand. They are not evidence that the system has human intentions. The chapter calls this habit the intentional stance.