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Everything else feels like an engineering problem.

That's probably the key to understanding why the hallucination "problem" isn't going to be fixed because language models, as probabilistic models it's an inherent feature and they were never designed to be expert systems in the first place.

Building an knowledge representation system that can properly model the world itself is going more into the foundations of mathematics and logic than it is to do with engineering, of which the current frameworks like FOL are very lacking and there aren't many people in the world who are working on such problems.

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