There is a third option:
The journalist who wrote the article made the quotes up without an LLM.
I think calling the incorrect output of an LLM a “hallucination” is too kind on the companies creating these models even if it’s technically accurate. “Being lied to” would be more accurate as a description for how the end user feels.
The journalist was almost certainly using an LLM, and a cheap one at that. The quote reads as if the model was instructed to build a quote solely using its context window.
Lying is deliberately deceiving, but yeah, to a reader, who in a effect is a trusting customer who pays with part of their attention diverted to advertising support, broadcasting a hallucination is essentially the same thing.
I think calling the incorrect output of an LLM a “hallucination” is too kind on the companies creating these models even if it’s technically accurate. “Being lied to” would be more accurate as a description for how the end user feels.