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Concept · Chapter 8: The Rise of Large Language Models

GPT-1 → GPT-2 → GPT-3

Must knowUnderstand12 minDifficulty

Between 2018 and 2020 OpenAI kept the same recipe (a decoder-only Transformer trained on next-token prediction) and scaled it about a thousandfold, and the way the models were used changed from fine-tuning to zero-shot to few-shot prompting.

The problem

Was next-token prediction just a pretraining trick before fine-tuning, or could the model itself do tasks?

The solution

Scale model size, data and context, and evaluate by describing tasks in the prompt instead of fine-tuning.

The consequence

GPT-3 showed that a single large model could perform many tasks from a few examples in its prompt, which redirected the field toward scale and prompting.

Three models, one recipe

GPT-1 (2018)GPT-2 (2019)GPT-3 (2020)
Parametersabout 117M (12 layers)up to 1.5B (48 layers)175B
Data7,000+ unpublished booksWebText, about 40 GB300B training tokens from filtered web, books, Wikipedia
Context512 tokens1,024 tokens2,048 tokens
How it was usedpretrain, then fine-tune per taskzero-shot: describe the task in the promptfew-shot: show examples in the prompt

The architecture barely changed: a stack of decoder blocks with a causal mask, trained on next-token prediction. What changed was scale, roughly a thousandfold in parameters, and the question researchers asked of the model.

The shift in how models were used

  • GPT-1 still fine-tuned on each task and beat the state of the art on 9 of the 12 tasks studied Established.
  • GPT-2 reached state-of-the-art results on 7 of 8 language-modelling benchmarks with no fine-tuning (zero-shot) Established. It also did rough versions of translation, summarisation and question answering when the prompt was phrased the right way, for example ending an article with "TL;DR:" to get a summary. OpenAI initially released only smaller versions, citing concerns about misuse Established, a first public argument about releasing a language model.
  • GPT-3 performed many tasks from a handful of examples placed in the prompt, with no gradient updates, sometimes matching fine-tuned systems Established. This is in-context learning.

What to remember

  • GPT-1 (2018): 12 layers, books corpus; pretrain then fine-tune; better on 9 of 12 tasks.
  • GPT-2 (2019): 1.5B parameters, 40 GB of web text, 1,024-token context; zero-shot tasks from the prompt.
  • GPT-3 (2020): 175B parameters, 300B training tokens, 2,048-token context; few-shot in-context learning.
  • Same architecture family throughout; what changed was scale and how the model was used.

Key papers

Essential

Language Models are Few-Shot Learners

Tom B. Brown, Benjamin Mann et al. · 2020 · NeurIPS 2020

GPT-3 (175B parameters) showed that a large enough language model can perform new tasks from a few examples in its prompt, without any gradient updates.

How to read it: 75 pages. Sections 1–2 and Figure 1.2 carry the core idea; Section 6 on broader impacts is worth reading too.

~1 h 30 min readarXiv:2005.14165✓ verified 2026-09-26
Essential

Improving Language Understanding by Generative Pre-Training

Alec Radford, Karthik Narasimhan et al. · 2018 · OpenAI technical report

GPT-1: a 12-layer decoder-only Transformer pretrained to predict the next token on over 7,000 unpublished books, then fine-tuned. It improved the state of the art on 9 of 12 tasks and set the template for every GPT since.

~30 min read✓ verified 2026-09-26
Essential

Language Models are Unsupervised Multitask Learners

Alec Radford, Jeffrey Wu et al. · 2019 · OpenAI technical report

GPT-2: a 1.5-billion-parameter model trained on 40 GB of web text that performed tasks with no fine-tuning at all (zero-shot), just from how the prompt was phrased.

~35 min read✓ verified 2026-09-26

Watch

4 h 1 min

Andrej Karpathy

Let's reproduce GPT-2 (124M)

Build and train the smallest GPT-2 from scratch in PyTorch, then optimise it. For when you want to implement what this chapter describes.

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