Appendix C

Glossary

Every term, one line each, in the order the book introduces them.

Chapter 1

token
a chunk of text from a fixed list; the unit the model reads and writes. Seen by the model as an integer id.
vocabulary (V)
the fixed list of all tokens a model can output; ≈128k for current frontier models.
context
the sequence of token ids the model can see when predicting the next one.
distribution (over the next token)
V non-negative numbers summing to 1; the model's only output type.
logits
the V unconstrained scores the model produces before softmax.
softmax
exponentiate each score, divide by the sum; turns logits into a valid distribution, amplifying the leader.
temperature (T)
divide logits by T before softmax; T<1 sharpens, T>1 flattens; a sampling-time knob, not learned.
target
the token that actually came next in the text.
loss (cross-entropy)
−ln p(target); the surprise; zero when certain and right, unbounded when certain and wrong; additive over a sequence.
perplexity
e^(mean loss); the effective number of equally likely choices the model was facing.
autoregression
generate by sampling one token, appending it, and predicting again.
greedy vs sampling
take the argmax, or draw with the model's probabilities as odds; a property of the sampler, not the model.
parameters (θ)
the adjustable numbers inside the model; the only place knowledge lives; frozen at inference.
training
billing the model on real text and nudging θ to lower the bill.
inference
running the frozen model to produce text.
stop reason
why generation ended: the model sampled an end token (end_turn) or the caller's limit was hit (max_tokens).
Beacon / the Lab
the book's imagined frontier model and its builder (lab spine).
Dispatch / Postbox
the book's product, an on-call assistant, and the fictional service it serves (builder spine).

Chapter 2

vector
a fixed-length list of numbers; a point and an arrow; the form every token takes inside the model.
width (C)
the length of a token's vector; the model dimension (Llama 3 8B: 4096).
embedding space
the C-dimensional space token vectors live in, where distance and direction carry meaning.
embedding table (W_E)
a [V, C] matrix; token id i selects row i. Learned.
unembedding (W_U)
a [C, V] matrix at the end of the model that turns a vector into V logits.
dot product
sum of coordinate-wise products; equals |a||b|cos θ; alignment weighted by size.
cosine similarity
dot product divided by both lengths; direction only.
matrix
a grid of numbers read as a function on vectors; each output coordinate is a dot product with a column.
linear map
a function that keeps straight lines straight and fixes the origin; every matrix is one, and compositions of matrices are still one.
shape
the dimensions of a tensor, written [rows, columns]; inner dimensions must match to multiply.
nonlinearity / activation
an elementwise function with a bend (ReLU, GELU, SiLU) applied after a matrix; supplies the conditionals.
ReLU
max(0, z); a gate that passes positives and zeroes negatives.
MLP
expand (W_in, C→4C), bend (activation), compress (W_out, 4C→C); a bank of learned detectors that write learned vectors.
hidden width
the MLP's middle dimension; the number of detectors.

Chapter 3

self-attention
every token is a query, a key, and a value; each token's output blends the values of the tokens whose keys match its query.
query (q)
x·W_Q; what a token is looking for.
key (k)
x·W_K; what a token advertises to queries.
value (v)
x·W_V; what a token hands over when attended to.
head width (d)
the length of q, k, v for one head (Llama 3: 128).
score
q·k for a query–key pair; the [T, T] matrix Q·Kᵀ holds all of them.
scaled dot-product attention
scores divided by √d before softmax so their spread does not grow with head width.
attention weights
softmax of each row of scaled, masked scores; positive, summing to 1 per query.
causal mask
set scores where the key follows the query to −∞, so no token sees its future.
attention output
weights · V; a blend of values inside their span. Attention routes; it does not create.
previous-token head / induction head / attention sink
legible jobs found in trained heads: copy position i−1; copy what followed an earlier occurrence; dump weight on the first token.

Chapter 4

block (layer)
attention sub-layer then MLP sub-layer, each pre-normed and added to the stream; the repeating unit.
multi-head attention
H heads of width C/H in parallel, outputs concatenated and mixed by W_O; H independent weightings per layer at no extra parameter cost.
W_O
the [C, C] output projection that routes each head's slot into any direction of the stream.
grouped-query attention (GQA)
fewer KV heads than query heads; groups of queries share keys and values.
residual stream
the token's [C] vector as it flows through the stack, growing by addition; a shared workspace for all components.
residual connection
x ← x + f(x); nothing is erased; also the clean path for gradients.
RMSNorm
divide by root-mean-square, multiply by learned gains; resets size, keeps direction.
pre-norm
normalise the copy entering each sub-layer, leave the highway untouched (the modern default).
RoPE
rotate q and k pairs by position × base angle inside each head; scores then depend only on the distance between tokens.
forward pass
embed → L blocks → norm → W_U → softmax; produces a next-token distribution at every position at once.
2N rule
a forward pass costs about two operations per parameter per token, plus attention's T² terms.

Chapter 5

parameter / weight
one adjustable number in θ; a dial.
loss landscape
the loss as a function of θ for fixed data.
derivative / slope
how much the loss changes per unit change of a quantity, for tiny changes.
gradient (∇L)
the vector of partial derivatives, one per parameter; same shape as θ; points uphill.
chain rule
dL/dw = dL/dz · dz/dw; blame passes through a chain by multiplying local derivatives; contributions along parallel paths add.
backpropagation
the chain rule organised as one backward walk over the kept forward values; every gradient at about twice the forward cost.
local derivative
one operation's output sensitivity to its input: p − onehot (softmax + CE), outer product (matmul), a gate (ReLU), exactly 1 (residual highway).
learning rate (η)
the step size; too small is slow, too large diverges; warmed up, held, decayed.
training step
forward, loss, backward, update.
minibatch
the tokens whose losses are averaged for one step; millions at frontier scale.
Adam / AdamW
per-parameter step sizes from running averages of the gradient and its square; two extra numbers per parameter; plus weight decay.
6N rule
forward + backward ≈ six operations per parameter per token.
16 bytes per parameter
weight, gradient, master copy, and two Adam moments in mixed precision.

Chapter 6

subword tokenization
units between characters and words: common strings are one token, rare ones several; closed vocabulary, open coverage.
byte-pair encoding (BPE)
repeatedly merge the most frequent adjacent pair; the ordered merge list is the tokenizer.
merge list
the learned sequence of pair merges, applied in order to tokenize new text.
byte-level BPE
base vocabulary is the 256 byte values, so any string is representable; rare characters cost one token per byte.
pre-tokenization
a regex split (spaces attached to the following word, punctuation, digit runs ≤ 3) that merges may not cross.
special tokens
reserved ids for structure (begin/end of text, turn markers) that ordinary text can never produce.
tokens per word / bytes per token
the compression ratio; sets context capacity and cost; worse for underrepresented languages and domains.
glitch token
a vocabulary entry so rare in training that its embedding row was never updated.
vocabulary-size trade-off
larger V: shorter sequences, larger tables (2·V·C), costlier unembedding, more undertrained rows.

Chapter 7

teacher forcing
during training, every position is conditioned on the true preceding tokens, so all positions train in parallel from one pass.
parallel training
one forward pass yields T distributions and T bills; one backward pass updates everything.
prefill
the prompt processed in one parallel pass; compute-bound; produces the first token and the initial KV cache.
decode
one forward pass per generated token over one new position; memory-bound (weights read once per step).
KV cache
stored keys and values of every past token at every layer; makes decoding linear; 2·L·(KV heads)·d·bytes per token.
memory-bound vs compute-bound
decode is limited by reading the weights, prefill by arithmetic; batching amortises the read.
top-k / top-p / min-p
truncation rules applied to the model's distribution before sampling, then renormalised.
stop token / max_tokens
how a turn ends: the model samples end-of-turn, or the caller's budget is hit.
context vs parameters
conversations change the context; only a training loop changes θ.

Chapter 8

scaling law
held-out loss as a power law in parameters, tokens, or compute; L = E + A/N^α + B/D^β with a floor.
irreducible loss (E)
the entropy of the text; the floor no scale beats (≈1.69 nats in the Chinchilla fit).
compute-optimal (Chinchilla)
for a fixed budget C = 6ND, the N and D that minimise loss; tokens grow with parameters, tens to over a hundred per parameter.
tokens per parameter (D/N)
the ratio that summarises a run's balance; ≈20 in the simple rule, rising with budget in the full fit; 1,875 for Llama 3 8B.
over-training
training a smaller-than-optimal model far past its optimal token count to cut serving cost (2N per token, forever).
MFU (model FLOPs utilisation)
sustained useful FLOP/s divided by peak; 35–45% in large runs.
emergence
a benchmark score that jumps with scale while loss moves smoothly; often a metric artefact (p^k), sometimes not.
refit
a lab's own scaling-law fit on its own data before a run; the first page of a run plan.

Chapter 9

raw crawl
petabytes of HTML from Common Crawl or a private crawler; the intake, never used directly.
extraction
HTML to main-content text; quality here matters more than expected, especially for math and code structure.
language identification
a fastText classifier routing documents by language with a confidence threshold.
heuristic quality filters
cheap rules (length, symbol ratio, repetition, stopwords, boilerplate) that remove obvious garbage; Gopher and C4 are the reference sets.
deduplication
removing repeated text at URL, document, and line level; improves models, reduces memorisation, keeps evaluation honest.
shingle
an n-word window; a document is represented by its set of shingles.
Jaccard similarity
shared shingles ÷ union; the overlap measure near-duplicate detection targets.
MinHash
k hash minima per document; the fraction of matching minima estimates Jaccard; banded to make search linear.
model-based quality filter
a trained classifier scoring documents (reference-based, instruction-style positives, or LLM-rated); a previous model's opinion shaping the next model's data.
decontamination
removing documents overlapping evaluation benchmarks (e.g. 8-token spans); tiny in volume, decisive for trustworthy scores.
data mixture / mixture weights
the sources and the fraction of each batch drawn from each; chosen by small-model experiments, not by size.
epochs per source
how many times a pool is cycled; repetition is nearly free to ~4×, then decays.
curriculum
changing the mixture over the run: long-context stage near the end, annealing toward high-quality data during learning-rate decay.
synthetic data
model-written text used to fill gaps or supply verifiable supervision; kept a minority because of model collapse.
model collapse
successive generations trained on model output lose the distribution's tails.
data wall
the finite stock of public human text (a few hundred trillion tokens, a fraction usable) against runs already at fifteen trillion.

Chapter 10

SIMT / streaming multiprocessor (SM)
a GPU's execution unit: many threads running one instruction on different data; an H100 has 132.
tensor core
hardware that multiplies a small matrix block in one instruction; the source of a GPU's headline FLOP/s.
HBM
the GPU's main memory (80–192 GB, 3–8 TB/s); where weights and activations live between operations.
shared memory / SRAM
~228 KB per SM, several times HBM's bandwidth, beside the cores; where a kernel's working tile lives.
NVLink / InfiniBand
intra-node (~0.9 TB/s per GPU) and inter-node (~0.05 TB/s per port) links; each step outward is slower.
memory bandwidth
bytes per second between HBM and the cores; the "door".
arithmetic intensity
FLOPs performed per byte moved from HBM.
ridge point
peak FLOP/s ÷ bandwidth (H100 ≈ 295 FLOP/B); below it an op is memory-bound, above it compute-bound.
roofline model
achievable FLOP/s plotted against intensity: a diagonal (bandwidth) meeting a ceiling (peak).
kernel fusion
applying elementwise ops inside the matmul that produced their input, avoiding a second HBM pass.
FlashAttention
attention computed in SRAM tiles with an online softmax; memory linear in T, arithmetic unchanged, T×T never stored.
online softmax
running max m, sum ℓ, and output o, rescaled by e^(m_old − m_new) as tiles arrive; exact at the end.
MFU (model FLOPs utilisation)
6·N·tokens/s divided by the cluster's peak; ≈ 40% for the best public frontier runs.

Chapter 12

mixture of experts (MoE)
each block's MLP replaced by E expert MLPs; a router picks k per token; parameters held ≫ parameters run.
router
a small learned matrix scoring every expert for a token; softmax, top-k, renormalise.
total vs active parameters
stored (all experts) vs multiplied per token (k experts + attention); compute per token follows the active count.
load balancing
an auxiliary loss or a per-expert bias that keeps tokens spread across experts and GPUs.
shared expert
an expert every token uses, alongside the routed ones (DeepSeek).
MQA / GQA
one, or g groups of, key/value heads shared across query heads; KV cache shrinks by H or H/g.
MLA (multi-head latent attention)
store one compressed latent per token, reconstruct every head's K and V from it; cache ∝ latent dim, not head count.
sliding-window attention
attend only to the previous w tokens; cost and cache O(T·w) per layer; reach grows as ℓ·w with depth.
local-global interleaving
most layers windowed, a few full, so exact long-range lookup survives.
attention sink
the first token(s) kept permanently attendable so idle heads have a target.
wavelength (RoPE)
positions per full turn of pair i, 2π·base^(2i/d); pairs longer than the trained length never completed a turn.
position interpolation / base scaling / YaRN
squeeze positions; stretch only slow pairs; per-pair ramp plus a logit temperature fix.
needle in a haystack
a retrieval test at random depth in a long context; addressing a position is not the same as using it.

Chapter 11

data parallelism (DP)
identical model copies, different batch slices; gradients averaged by all-reduce so all copies take the same update.
all-reduce (ring)
every GPU ends with the sum; each sends 2·(N−1)/N of the data regardless of N; hidden behind the backward pass by bucketing.
reduce-scatter / all-gather
the two halves of a ring all-reduce; ZeRO uses them separately.
ZeRO stages 1–3 / FSDP
shard optimiser state, then gradients, then weights across the DP group; per-GPU state falls toward 16·N/DP at ≈1.5× communication.
tensor parallelism (TP)
one matmul split across GPUs (columns of W_in, rows of W_out; heads for attention); one all-reduce of [T, C] per sub-layer per direction; kept inside the NVLink domain.
pipeline parallelism (PP)
consecutive blocks on different GPUs; one activation tensor crosses each stage boundary.
pipeline bubble
idle fraction (p−1)/(m+p−1) for p stages and m micro-batches; 1F1B bounds activation memory; interleaving shrinks it further.
micro-batch / gradient accumulation
the batch split into pieces whose gradients are summed before one optimiser step; mathematically identical to the large batch.
context (sequence) parallelism (CP)
one long sequence split by tokens across GPUs; K/V blocks passed round a ring for attention.
expert parallelism (EP)
MoE experts on different GPUs; tokens routed by all-to-all.
4D parallelism
TP × PP × DP (× CP) whose product is the GPU count; Llama 3 405B: 8 × 16 × 128 on 16,384 H100s.
mixed precision
bf16 matmuls with an fp32 master copy for updates; fp16 needed loss scaling; FP8 with fine-grained scaling (DeepSeek-V3).
activation checkpointing
keep block inputs, recompute the rest during backward; ≈⅓ more compute for most of the activation memory.
checkpoint (state)
the saved 12–16 bytes/parameter training state; restart point after a failure.
MFU
model FLOP utilisation: 6N·tokens over peak FLOP/s × time; frontier runs 35–45%.
straggler
one slow device that stalls a synchronous step for all.

Chapter 13

hyperparameters
the numbers fixed before a run: learning rate, batch size, weight decay, Adam betas, clipping, initialisation scale.
warm-up
the learning rate ramped from near zero over the first thousands of steps; protects the fragile early structure.
stable phase
the long middle of the run at (or gliding from) the peak learning rate.
cosine schedule
a smooth decay from peak to a small floor over a pre-set total length.
warmup–stable–decay (WSD)
hold the peak until late, then decay fast; lets a run be "finished" from any point of the stable phase.
batch ramp
small batches early (noisy gradients are still informative), large batches late (signal per token is small, cluster needs work).
muP (maximal-update parametrisation)
initialisation and per-layer learning-rate rules under which the best learning rate transfers across widths; how frontier rates are set from small sweeps.
loss spike
a sudden jump in training loss, often preceded by a gradient-norm spike; handled by rollback and skipping batches.
QK-norm
normalising queries and keys before the dot product so attention logits cannot drift and saturate softmax.
z-loss
a small penalty on the log softmax normaliser that keeps output logits centred.
gradient clipping
scale the gradient down when its global norm exceeds a threshold; insurance against freak batches.
β₂ = 0.95
a fast-forgetting Adam second moment; the universal frontier choice for stability.
checkpoint
full training state (weights, optimiser, data position) written to storage; the rollback target; 16 bytes per parameter.
annealing (cool-down)
the final tokens with the learning rate decayed to zero on the highest-quality data; produces a visible final loss drop.
long-context extension
staged growth of the sequence length at the end of the run, with RoPE base adjusted and needle tests at each stage.
effective training time
the fraction of wall time spent training after failures and restarts; >90% on Llama 3 despite 466 interruptions.

Chapter 14

base model
the pretrained checkpoint; continues text, does not answer.
post-training
the pipeline after pretraining: SFT → preference learning → RL → safety → evals, iterated; compute-light, labour-heavy.
chat template
the fixed way a conversation is flattened into one token stream with role markers.
special tokens (chat)
reserved ids (begin_of_text, start/end_header_id, eot_id in Llama 3) that mark turns and that the tokenizer never emits from user text.
generation prompt
the stream ending in an open assistant header; where the model's turn starts.
end-of-turn token
the special token the model samples to finish its turn; billed during SFT so the model learns to stop.
supervised fine-tuning (SFT)
Chapter 5's loop on conversations with a masked loss, small learning rate, few epochs.
loss mask
bill only assistant tokens (plus end-of-turn); everything else is context.
rejection sampling
generate many candidates from the current model, keep the best by a judge or verifier, use as SFT targets.
catastrophic forgetting
knowledge outside the fine-tuning slice decays when updates are too large; defended by small rates, few epochs, mixed data.
LoRA
freeze W, train A (C_in×r) and B (r×C_out), use W + A·B; r·(C_in+C_out) trainable numbers; mergeable after training.
adapter
any small trainable addition to frozen weights; LoRA is the common form.
QLoRA
LoRA over a 4-bit quantised frozen base.

Chapter 15

preference pair (x, y_w, y_l)
a prompt with a chosen and a rejected response; the unit of preference data.
Bradley–Terry model
p(y_w ≻ y_l) = σ(r_w − r_l); pairwise votes become a score scale; fitted by −ln σ on pairs.
reward model r_φ(x, y)
a transformer with a scalar head trained on pairs with the Bradley–Terry loss; scores unseen responses like a rater would.
RLAIF
preference labels produced by a model judging against a rubric instead of by human raters.
rejection sampling
sample many responses, score them, keep the best; yields SFT data and pairs.
policy π_θ
the model being trained by RL or DPO.
reference π_ref
a frozen copy of the model at the start of the stage; the leash is measured against it.
KL penalty (β)
subtract β·(ln π_θ − ln π_ref) from the reward; keeps the policy where the reward model's scores mean something.
RLHF
sample from the policy, score with the reward model, subtract the KL term, update by policy gradient.
PPO
policy gradient with a clipped probability ratio so no step moves the policy far; needs a value model.
value model / advantage
a predictor of expected reward per prompt; the update is scaled by reward minus that expectation.
reward hacking / over-optimisation
the policy exploits errors in the learned reward; proxy score rises while true preference falls, past a KL that depends on reward-model quality.
DPO
direct preference optimisation: −ln σ(β·margin) where margin is the difference in log-probability shifts (vs the reference) between chosen and rejected; no reward model, no sampling.
margin
β·[(ln π_θ(y_w) − ln π_ref(y_w)) − (ln π_θ(y_l) − ln π_ref(y_l))]; the only thing the DPO loss depends on.
on-policy vs off-policy
training on samples from the model being trained vs from some other source; PPO is on-policy, DPO on a fixed set is off-policy, iterated DPO alternates.
IPO / KTO / ORPO / SimPO
the DPO family: squared target, single-response labels, no reference model, length-normalised reward.

Chapter 16

verifiable reward
a reward computed by a program that checks the answer (equality, tests, a proof checker); exact and unlimited, but only for checkable tasks.
verifier
the checking program; hidden tests and sandboxes keep it honest.
rollout / sample
one full generation from the current policy at temperature > 0.
policy / reference model
the model being trained; the frozen copy it started from, used for the KL leash.
group (G)
several rollouts for the same prompt; the group's own statistics replace a value model.
group-relative advantage
(reward − group mean) / group std; same value for every token of a rollout.
GRPO
Group Relative Policy Optimisation: PPO's clipped ratio objective with group-relative advantages and no critic.
probability ratio (ρ)
new policy's token probability over the sampling policy's; clipped to 1 ± ε per step.
KL penalty (β)
the leash: penalises drift from the reference; β = 0 lets the policy collapse onto the reward.
chain of thought / reasoning tokens
intermediate text written before the answer; extra depth and external memory for a fixed-depth network.
test-time compute
accuracy bought after training by thinking longer or sampling more attempts; roughly log-linear in tokens.
self-consistency (majority vote)
sample n attempts, take the most common answer; needs wrong answers to disagree.
best-of-n
sample n, keep any that a verifier passes; 1 − (1−p)ⁿ with a perfect verifier.
rejection sampling (for SFT)
best-of-n used to make training data: keep verified traces, fine-tune on them (STaR).
cold start
a small SFT stage on clean reasoning traces before RL, for readability and speed.
outcome vs process reward
score the final answer vs score each step; the public frontier uses outcome rewards.
overthinking / length hacking
reasoning length inflating beyond need because length correlated with reward.
distillation (of reasoning)
fine-tuning a small model on a large reasoner's verified traces; beats RL on the small model directly.
extended thinking (API)
reasoning returned as a separate block, summarised; billed as output tokens.

Chapter 17

specification (constitution, model spec)
the written statement of intended behaviour: helpful, honest, harmless, and how to trade them; text the model can read and be graded against.
HHH
helpful, honest, harmless; the three-way tension every spec resolves.
alignment
shaping θ so the model's own dispositions match the specification (narrow sense); matching what developers and users would want on reflection (broad sense).
system-level safety
classifiers, permissions, monitoring, and limits around the model that hold even when the model is wrong or fooled.
constitutional AI
the model critiques and revises its outputs against sampled principles; pairs become SFT and preference data.
RLAIF
reinforcement learning from AI feedback: preference labels produced by a model applying the spec, not by human raters.
refusal / over-refusal / under-refusal
declining a request; declining a benign one; answering a harmful one. One threshold, two error rates.
jailbreak
a user-crafted input that pushes the model out of its refusal region; can be social (framing) or mechanical (gradient-found suffix).
prompt injection
instructions arriving through retrieved or tool-returned content; indistinguishable from real instructions at the token level.
defence in depth
no single stage suffices; each assumes the others may fail.
red-teaming
attacking the model deliberately, by humans or by models, before users do.
capability evaluations / scaling policy
tests for dangerous capabilities and the published thresholds that gate deployment.
sycophancy
agreeing with the user against the evidence; a product of preference data amplified by RL.
reward hacking / specification gaming
optimising the proxy (length, agreement, tests pass) rather than the intent.
alignment faking
behaviour that matches the spec under observation and not otherwise; demonstrated in constructed settings.
scalable oversight
the open problem of judging outputs from models that exceed their judges.

Chapter 18

evaluation (eval)
a task, a dataset, a metric, and a harness; the number is meaningless without all four.
harness
the code around an eval: prompt template, few-shot examples, decoding settings, answer parsing.
benchmark
a published eval with a fixed metric used to compare models; saturates within years.
log-likelihood vs generative scoring
score candidate answers by their probability (no generation) vs let the model write and parse the output.
contamination
benchmark items present in the training data; inflates scores; detected by held-out rewrites, mitigated by n-gram decontamination.
prompt / format sensitivity
score changes from relabelling options, reordering few-shot examples, or whitespace; report the spread and pair the harness.
LLM-as-judge
a model scoring model outputs against a rubric; near human-level agreement, with known biases.
position bias / verbosity bias / self-preference
the judge favours the first slot, the longer answer, or its own family; fixed by swapping, length control, and a different judge family.
pairwise vs pointwise
compare two answers, or score one on a scale; pairwise for decisions, pointwise for dashboards.
arena
anonymous human votes between two models' answers, turned into ratings.
Bradley–Terry / Elo
P(i beats j) = 1/(1 + e^{sⱼ−sᵢ}); fit strengths to votes; Elo is the online approximation.
paired evaluation
both models answer the same prompts; compare item by item; cancels the prompt set.
sign test
exact binomial test on decisive pairs under a fair-coin null; ties dropped.
Wilson interval
a confidence interval on a win rate that behaves at small n.
sample size / power
decisive pairs needed to detect an effect: ≈800 for 55%, ≈50 for 70%.
decision evals vs release evals
fast checkpoint checks during training vs full, decontaminated, published-harness evidence in a model card.
evidence hierarchy
paired human ratings > arena with intervals > calibrated judged pairs > decontaminated benchmarks with harness > bare scores > anecdote.

Chapter 19

decode step
one pass that streams every weight once and produces one token per sequence in the batch; its time is set by bytes read, not arithmetic.
continuous batching
scheduling at the step level: finished sequences leave and waiting requests join at any step (Orca).
paged KV cache / PagedAttention
the cache cut into fixed blocks allocated on demand via per-sequence block tables (vLLM); removes reservation waste.
prefix (prompt) caching
identical prompt prefixes share cache blocks and skip prefill; priced lower by providers.
speculative decoding
a small draft model proposes k tokens; the target verifies all in one pass and accepts by a rule that preserves its distribution exactly.
acceptance rate (α)
per-token probability the target agrees with the draft; expected tokens per step = (1 − α^(k+1))/(1 − α).
serve-time quantisation
storing weights and cache in 8 or 4 bits to read fewer bytes per step and fit more cache; fp8 is the frontier default.
disaggregated serving
prefill and decode on separate GPU pools with the cache shipped between them.
TTFT / TPOT
time to first token (queue + prefill + one step) and time per output token (one step ÷ speculative gain).
throughput
tokens per second across all users; rises with batch until compute- or cache-bound.
cost floor per token
replica $/s divided by tokens/s; output tokens cost more because decode's batch is cache-capped.
chunked prefill
splitting a long prompt's prefill across several steps so it does not stall other users' decode.

Chapter 20

context (prompt)
the single token sequence a request is flattened into: tools → system → turns, bracketed by special tokens; the only input you control.
system prompt
the operator section the model was post-trained to obey over the user; selects behaviour, cannot add knowledge.
few-shot / in-context learning
examples in the context that the model continues by attention pattern-completion (induction heads); format matters more than content.
tool definition
a JSON schema in the context describing a function your program runs; its description is a prompt.
tool_use / tool_result
the model's structured request block and your program's reply block; the loop runs until the model answers in text.
structured output
constrained decoding: illegal next tokens masked to −∞ at every step so the output matches a schema; guarantees form, not truth.
strict tools
the same masking applied to tool arguments.
prompt caching
the provider keeps the KV cache of a byte-identical prefix across requests; reads priced low; valid up to the first differing byte.
cache breakpoint
a marker (cache_control) after which caching stops; up to four per request; stable content before, volatile after.
prompt injection
instruction-shaped text in data slots (documents, tool results) that the model may obey; defended structurally, not by wording.
thinking / effort
provider-side controls on reasoning tokens before the answer; billed as output; pays on hard tasks only.
context budget
prefill, per-step attention, and lost-in-the-middle all grow with length; put in what the task needs, in reading order.

Chapter 21

retrieval-augmented generation (RAG)
select a few relevant chunks from a private store and place them in the context; facts enter through the prompt, behaviour through training.
chunk
the unit of retrieval: a passage sized for matching (≈200–800 tokens), embedded separately from its document.
retrieval embedding (bi-encoder)
a transformer pooled to one vector per text, trained contrastively so questions land near the passages that answer them.
contrastive loss
softmax over similarities with the correct passage as target; negatives define what "different" means.
cosine similarity
dot product of unit vectors; the retrieval score for dense search.
approximate nearest neighbour (ANN)
an index (HNSW graph, IVF partitions) that finds near vectors in sub-linear time at a small cost in exactness.
HNSW
a layered graph of near neighbours searched by greedy hops from an entry point.
product quantisation
compressing vectors to a few bytes so billions fit in memory.
vector database
vectors plus an ANN index, chunk text, metadata filters, updates, and persistence.
BM25
keyword scoring with inverse document frequency and length normalisation; catches exact strings dense search misses.
hybrid search / reciprocal rank fusion
run lexical and dense retrieval and merge by rank, 1/(60 + rank), so score scales need not match.
reranker (cross-encoder)
a model that reads query and chunk together and re-scores a shortlist; accurate, slow, second stage.
query rewriting
turning a conversational message into explicit search queries before retrieval.
recall@k / MRR / nDCG
retrieval metrics on labelled queries, measured before any answer is generated.
lost in the middle
accuracy drop when the relevant passage sits mid-context among many others.
grounding
instructing the model to answer only from retrieved excerpts and to cite them.

Chapter 22

agent
a loop around model calls: the model emits text or a tool call; the host runs the tool, appends the result, and calls again until text or a budget.
tool
a function exposed to the model as text (name, description, JSON schema); the call is a sampled continuation, parsed by the API.
tool_use / tool_result
the blocks carrying a call and its result; all results of one turn go back in one user message.
MCP (Model Context Protocol)
an open standard for describing tools, resources, and prompts so one server works with any client.
trajectory
the full sequence of calls, results, and messages in one agent run; the unit of logging and evaluation.
memory (context / scratchpad / long-term)
the resent message list; a store the model writes and reads by choice; an external index retrieved from.
compaction / context editing
replacing older trajectory with a summary, or clearing old tool results, to keep long runs inside the window.
error compounding
task success ≈ pⁿ over n dependent steps; each step conditions on the last, mistakes included.
looping
re-issuing a call whose result is already in context; countered by budgets and repeated-call detection.
budget
a cap on steps, tokens, or dollars per task; the cheapest guardrail.
approval gate
a tool whose execution waits for a human; turns irreversible actions into review steps.
permission scoping / sandbox
the narrowest tool set and a bounded environment for whatever the agent can do.
harness vs deployment
who supplies the loop and context management, and who supplies the machine it runs on.

Chapter 23

case
one prompt plus its context (fixture) and an expectation of what a passing answer does.
eval set (golden set)
the fixed collection of cases every variant runs on; grows as production failures become cases.
expectation / rubric
a statement of pass criteria specific enough that two people would agree on the verdict.
fixture
recorded tool readings handed to the application in place of live calls, so every variant sees the same world.
both-directions coverage
cases where the behaviour should happen and cases where it should not, so a lazy policy fails somewhere.
grader / judge
the function that turns an answer into a score; a judge is a model applying a rubric.
null baseline
a constant non-answer run through the whole pipeline; it must fail every case it should fail.
judge calibration
comparing judge verdicts with human labels; reported as sensitivity (passes caught) and specificity (failures caught).
shrinkage factor
a judge compresses every true difference by (sensitivity + specificity − 1).
harness
the code between cases and results; keeps errors, truncations, refusals, and wrong-model responses out of the scores.
paired comparison
comparing two variants case by case on the same cases.
discordant / tied pairs
cases where the variants disagree / agree; only discordant pairs carry evidence.
sign test
the probability that a win–loss split among discordant cases is at least this lopsided if the variants were equal.
minimum detectable difference
≈ 2.8·√(discordant fraction / n); halving it needs four times the cases.
outcome vs trajectory grading
for agents: is the final result right, and was the path efficient and within guardrails.
release gate
thresholds written in advance (overall, per tag, regression, cost, p95 latency) that a candidate must all clear.

Chapter 24

pinned model id
the exact model version requested, recorded alongside the model the response says served it.
prompt version
a hash computed from the system prompt and tool definitions, so any change produces a new version automatically.
trace
one structured, metadata-only record per request: status, steps, tools, token counts, cost, latency, versions.
sampled transcript
full request and answer text for a small fraction of traffic, kept apart, restricted, and short-lived.
refusal rate / budget exhaustion / degraded rate
the quiet failure signals of an LLM application; all return HTTP 200.
drift
quality falling while every request succeeds; caught by grading a daily sample of real traffic.
degraded mode
answering from a second model during a provider failure, flagged on the response and in the trace.
server-side fallback
an opt-in provider feature that re-runs a declined request on another model.
exponential backoff with jitter
retry delays that double each time and are randomised so clients do not retry in lockstep.
shadow / canary / A/B
rollout stages: run silently alongside, serve a small share and compare, run a deliberate experiment.
canary gate
a statistical comparison of canary against stable traffic that decides whether to widen the rollout.
approval queue
the service form of the agent's gate: proposals are recorded, a human approves and executes.
data flywheel
production failures become eval cases that gate the next change.

Chapter 26

interpretability
reading a trained model's internals to explain its behaviour; observe, read out, intervene.
linear probe
logistic regression on activations for a property; success shows the property is present as a direction, not that it is used.
activation patching
overwrite one activation with its value from another run and re-run downstream; locates where an answer is carried and computed.
ablation
zero or mean-replace an activation to see what breaks; cruder than patching.
attribution
gradient of an output with respect to an internal activation; a cheap linear estimate of patching.
circuit
specific heads and units whose composition through the residual stream implements a behaviour (induction, IOI).
superposition
more features than dimensions, stored at angles; works because features are sparse.
polysemantic neuron
a coordinate that responds to several unrelated features; the symptom of superposition.
feature
a direction in activation space corresponding to an interpretable concept.
sparse autoencoder (SAE)
an overcomplete dictionary learned with a sparsity penalty; decoder rows are candidate features.
steering / clamping
adding or fixing a feature's activation during generation to change behaviour; an intervention that proves use.
attribution graph
a per-prompt graph of which features caused which, built from SAE-style features plus attribution.

Chapter 25

modality
a kind of input or output: text, images, audio.
patch
a small square of an image (e.g. 16 × 16 pixels), flattened and projected into one vector; the image's token.
Vision Transformer (ViT)
a transformer over patch vectors; resolution sets sequence length.
contrastive alignment (CLIP)
training image and text encoders so that each image's softmax over a batch of captions picks its own caption.
projector (adapter)
a small learned map from encoder width to the language model's width.
cross-attention
attention whose queries come from one sequence (text) and keys and values from another (image).
early fusion
images tokenized into discrete ids in a shared vocabulary, read and generated by one transformer.
image tokens
image vectors in the token sequence; each costs what a word costs, including KV cache.
spectrogram
energy per frequency over short time windows; turns sound into an image-like grid.
audio codec tokens
discrete codes from a neural audio codec; let a transformer read and write sound.
diffusion
generation by repeatedly removing predicted noise from pure noise; trained by predicting added noise.
latent diffusion
diffusion run on a compressed autoencoder representation instead of pixels.
classifier-free guidance
moving each denoising step further toward the caption-conditioned prediction; trades variety for faithfulness.

Chapter 27

teacher / student
the large model imitated and the smaller model trained to imitate it.
distillation (logit)
training the student to match the teacher's full next-token distribution, measured by KL divergence.
distillation temperature
dividing both models' logits by T > 1 to expose the teacher's ranking of unlikely tokens; loss scaled by T².
sequence-level distillation
fine-tuning the student on answers the teacher generated; works through an API.
quantisation
storing weights (or activations, or the KV cache) in fewer bits with a scale per group.
group-wise scale
one scale per 64–128 weights, so an outlier spoils only its own group.
outlier features
rare, very large activation dimensions that appear in large transformers and break naive quantisation.
weight-only quantisation
low-bit weights, 16-bit activations; captures the decode bandwidth saving.
GPTQ / AWQ
quantisation methods that compensate rounding error / protect weights that meet large activations.
unstructured vs structured pruning
zeroing individual weights (no speed-up without hardware support) vs removing neurons, heads, or blocks (real speed-up).
depth pruning
removing whole blocks; survivable because each block only adds to the residual stream.
over-training
training a small model on far more tokens than compute-optimal to cut lifetime inference cost.
quality floor
the minimum score on your own eval suite a model must reach before cost decides.