> How functional does the code have to be before it's no longer a hallucination?
From LLMs, at least, I expect it will always be a hallucination. Code is never the point. Code is the working medium by which people solve problems for other people.
One way to see this is to realize that code bases on their own are generally worthless in the sense that people rarely pay much money for them. They pay for users. They pay for teams. But they don't generally pay for raw code.
Another way to look at it: imagine that a manager looks at ChatGPT and says, "At last, I can fire all the programmers. Fuck those guys." They set out to build an app. How long do you think it will take before they are forced to admit defeat and hire somebody who can read and edit the code?
Even if you think they make it all the way to a revenue-generating product, the manager will have become a prompt engineer, creating a large mass of interrelated prompts that are used to make code that makes the app. We have not eliminated the programmer; we have turned a manager into a programmer who has been forced to discover a new programming language. One that is clearly more English-like, but it also lacking in precision and, on current evidence, is much harder to use.
But I think the more likely outcome is that they will need actual programmers pretty quickly. That at best they will have speeded the creation of some more or less generic code. Which is exactly what we saw with the code-generation wizards of earlier eras: you got a fast initial result as long as it was pretty standard. But then you were generally worse off, because you had a bunch of only semi-coherent code that somebody had to understand before they could do novel or difficult things.