[Fade_Dance]

That's true to an extent - LLMs are trained on an abstraction of the world (as are we in a way, through our senses, and we necessarily use a sort of narrative in order to make sense of the quadrillions of photons coming up us) - but it's not quite as severe a problem as the simplified view seems to present.

LLMs distill their universe down to trillions of parameters, and approach structure through multi-dimensional relationships between these parameters.

Through doing so, they break through to deeper emergent structure (the "magic" of large models). To some extent, the narrative elements of their universe will be mapped out independently from the other parameters, and since the models are trained on so much narrative, they have a lot of data points on narrative itself. So to some extent they can net it out. Not totally, and what remains after stripping much of it out would be a fuzzy view of reality since a lot of the structured information that we are feeding in has narrative components.