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What is perplexity, and what are its limits as a language-model metric?

Perplexity is the classic LM metric. What matters is knowing it is just exponentiated cross-entropy, what it intuitively captures, and why low perplexity does not mean a good product.

Updated Sep 2026 · Grounded in real GenAI, LLM, and AI/ML engineering interview loops and written to a senior-engineer editorial bar.

Perplexity is the classic LM metric. What matters is knowing it is just exponentiated cross-entropy, what it intuitively captures, and why low perplexity does not mean a good product.

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