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How ChatGPT Writes One Token at a Time

1From Your Words to Tokens2Predicting the Next Token3Choosing a Token and Looping4Why the Answer Reads as Coherent Text
Predicting the Next Token

From Logits to Probabilities

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Those logits can be any size, so a score of eight next to a score of two hundred tells you little on its own. To make them comparable, the model runs them through a function called softmax.
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Logits are unbounded, so they cannot be read as likelihoods directly. Softmax converts them: it exponentiates each logit, which makes every value positive, then divides by the sum of all exponentiated values. The result is a probability distribution in which every value lies between zero and one and the whole set sums to exactly one. Now the numbers are comparable likelihoods rather than arbitrary scores.

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