It isn’t actually “making up” an answer, in that it isn’t some kind of deception or the like (that would require intent, and it does not have intent, it’s just a *very* fancy multiplication program).
It is collecting together data that forms a grammatically-correct sentence, based on the sentences you gave it. The internal calculations which figure out whether the sentence is grammatically correct have zero ability to actually know whether the statements it makes are *factual* or not.
The technical term, in “AI” design, for this sort of thing is a “hallucination.”
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