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You seem to be using memory in a very specific way, tied to human neurology, or consciousness.

I'm not using in that way. I'm using it in this way. https://en.wikipedia.org/wiki/Computer_memory

Just referring to a system that allows loading and storing of information on demand.

You are the one talking about “forming new concepts and reasoning from those concepts”.

Those things, forming concepts and reasoning, are actions that we only have a working formulation of in humans.

Memory that would allow the LLM to form new concepts and reason, as you state, would have to be interconnected. An offline text is not.