These top responses are not quite correct. Language models do not just generate word by word. They would show obvious signs of semantic error if they did. Models are very much able to take in different layers of context to decide how to generate text.
The reason you see Chat GPT generate responses word by word is because the designers built it that way. My guess is they wanted you to “see” the text generation. It’s an interface decision, not a consequence of how models generate text.
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