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can we come up with a 'reasonable' definition of understands that isn't couched in human exceptionalism and could still apply to any computer model?

i think dall-e understands, within the sensory domain it's trained from.

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I think DALL-E understands the same way an Excel sheet would understand SUM(B3:B6), obviously at a way larger scale and with a more complicated function. It's all just rather simple maths all the way down.

Not similar. The SUM() function was written by humans in a top-down fashion, DALL-E learned from the visual and textual data by a completely different process. DALL-E distilled something about the world and is using that to generate.

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