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A prevailing sentiment online is that GPT-4 still does not understand what it talks about. We can argue semantics over what “understanding” truly means. I think it’s useful, at least today, to draw the line at whether GPT-4 has succesfully modeled parts of the world. Is it just picking words and connecting them with correct grammar? Or does the token selection actually reflect parts of the physical world?
One of the most remarkable things I’ve heard about GPT-4 comes from an episode of This American Life titled “Greetings, People of Earth”.


“Simulating conversations” to a good enough degree requires intelligence. Why are you drawing a distinction here?
What a silly assertion. Eliza was simulating conversations in the 80s; it was no more intelligent than the current crop of chatbots.