Neural Networks & Transformers: How Modern AI Works in 2025

📝14 min readAI

Understand neural networks, transformers, and the architecture behind ChatGPT, Claude, and modern LLMs. From basic neurons to attention mechanisms explained simply.

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Neural Networks & Transformers: How Modern AI Works in 2025

Neural Networks are the foundation of modern AI, from image recognition to ChatGPT and Claude. In 2025, understanding neural networks—especially the Transformer architecture—is essential for anyone working with or curious about AI.

The Brain Analogy

Your brain is made of billions of interconnected cells called neurons. They receive electrical signals, process them, and pass them on to other neurons. An Artificial Neural Network (ANN) mimics this biological structure in a simplified, mathematical way to find patterns in data.

The Building Block: A Single Neuron

A single artificial neuron works in three simple steps:

  1. Receives Inputs: It takes one or more numerical inputs.
  2. Processes Inputs: Each input is multiplied by a 'weight' (importance). The neuron sums these weighted inputs and adds a 'bias'.
  3. Produces an Output: This sum passes through an 'activation function' that decides the output signal.

Training a neural network is about finding the perfect weights and biases.

From Neurons to Networks: The Power of Layers

  • Input Layer: Receives the initial data (pixels, words, numbers)
  • Hidden Layers: Where the 'thinking' happens. Deep networks have many hidden layers.
  • Output Layer: Produces the final result (classification, prediction, generated text)

How Networks Learn: Backpropagation

  1. Forward Pass: Network makes a prediction
  2. Calculate Error: Compare prediction to correct answer
  3. Backward Pass: Figure out which weights caused the error
  4. Adjust Weights: Update weights to reduce error

This cycle repeats millions of times until the network learns.

2025's Dominant Architecture: Transformers

The Transformer architecture (introduced in 2017's "Attention Is All You Need" paper) revolutionized AI and powers all modern LLMs including GPT-4, Claude, Gemini, and Llama.

What Makes Transformers Special?

The Attention Mechanism: Unlike older networks that process data sequentially, Transformers use "attention" to look at all parts of the input simultaneously and determine which parts are most relevant to each other.

For the sentence: "The cat sat on the mat because it was tired"

  • Attention helps the model understand "it" refers to "cat", not "mat"
  • It weighs relationships between all words at once

Key Transformer Components:

  1. Self-Attention: Allows each word to "attend" to every other word
  2. Multi-Head Attention: Multiple attention mechanisms running in parallel
  3. Positional Encoding: Tells the model the order of words
  4. Feed-Forward Layers: Process the attention output

Transformer Variants in 2025

Model TypeExamplesBest For
Decoder-onlyGPT-4, Claude, LlamaText generation, chatbots
Encoder-onlyBERT, RoBERTaText classification, search
Encoder-DecoderT5, BARTTranslation, summarization
Vision TransformersViT, CLIPImage understanding
MultimodalGPT-4V, Claude VisionText + images combined

Modern Neural Network Types

Convolutional Neural Networks (CNNs)

Still used for image processing, though often combined with Transformers.

Recurrent Neural Networks (RNNs/LSTMs)

Largely replaced by Transformers for sequence tasks but still used in some applications.

Diffusion Models

Power image generators like DALL-E, Midjourney, and Stable Diffusion. They learn to remove noise from images.

Mixture of Experts (MoE)

Used in models like Mixtral—only activates relevant "expert" sub-networks for each input, making large models more efficient.

Real-World Applications in 2025

  • LLMs & Chatbots: ChatGPT, Claude, Gemini for conversation and coding
  • Image Generation: DALL-E, Midjourney, Stable Diffusion
  • Video Generation: Sora, Runway using video transformers
  • Code Assistants: GitHub Copilot, Claude Code for development
  • Self-Driving Cars: Vision transformers for perception
  • Medical AI: Detecting diseases in X-rays and MRIs
  • Scientific Research: AlphaFold for protein structure prediction

Getting Started: Tools for 2025

# Simple PyTorch neural network
import torch
import torch.nn as nn

class SimpleNetwork(nn.Module):
    def __init__(self):
        super().__init__()
        self.layers = nn.Sequential(
            nn.Linear(784, 128),
            nn.ReLU(),
            nn.Linear(128, 10)
        )
    
    def forward(self, x):
        return self.layers(x)

# For Transformers, use Hugging Face
from transformers import AutoModel
model = AutoModel.from_pretrained("bert-base-uncased")

Learning Path for 2025

  1. Fundamentals: Understand basic neural networks first
  2. Deep Learning Frameworks: Learn PyTorch (preferred) or TensorFlow
  3. Transformers: Study the attention mechanism
  4. Hugging Face: Use pre-trained models and fine-tune them
  5. LLM APIs: Build applications with OpenAI, Anthropic APIs

Conclusion

Neural networks have evolved from simple perceptrons to the sophisticated Transformer architectures powering today's AI revolution. Understanding these fundamentals—from basic neurons to attention mechanisms—gives you the foundation to work with and build upon the AI technologies shaping 2025 and beyond.

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