Hallucinations generally don't matter at scale. Unless you're feeding back 100% synthetic data into your training loop it's just noise like everything else.
Is the average human 100% correct with everything they write on the internet? Of course not. The absurd value of LLMs is that they can somehow manage to extract the signal from that noise.
It's only "noise" if it's uncorrelated. I don't see any reason to believe it wouldn't be correlated, though.
LLM content generation is divorced from human limitations and human scale.
Using human foibles when discussing LLM scale issues is apples and oranges.
> The absurd value of LLMs is that they can somehow manage to extract the signal from that noise.
Say what? LLMs absolutely cannot do that.
They rely on armies of humans to tirelessly filter, clean, and label data that is used for training. The entire "AI" industry relies on companies and outsourced sweatshops to do this work. It is humans that extract the signal from the noise. The machine simply outputs the most probable chain of tokens.
So hallucinations definitely matter, especially at scale. It makes the job of humans much, much harder, which in turn will inevitably produce lower quality models. Garbage in, garbage out.