Earlier quoted context omitted.
The word was used because it was in the prompt and the prompt was constructed in such a way as to force it to use the new word in the place of an old word. No "understanding" is necessary, other than from the human constructing the prompt who needs to understand how the system works. In any case, it's a language model. It has no ability to "understand" anything. It can compute the probability of a token to follow fro…
I'm using "understood" metaphorically similarly to how people say machine learning models "learn" something when they really just minimize a loss.
Edit: btw, "learning" in the context of machine learning is more of a term of trade with well-established connotations. For example, we have Tom Mitchell's definition of a machine learning system as "a system that improves its performance over time", etc. We don't have similarly established definitions for the "understanding" terminology. Hence my request for clarification. I literally don't understand what you mean that GPT-3 "understands" metaphorically.