Yeah it’s hilarious, it definitely can hallucinate. Just because it can only hallucinate “A” or “B” rather than a whole paragraph, doesn’t mean it is suddenly more accurate.
And they’re acting like their probability isn’t as hallucinated as any other LLM guess.
They’re definining hallucination as a property of iterative generation, which is fair enough, but then it’s sort of like selling a boat and saying it doesn’t need tire changes.