Large Language Models Explained: A Deep Dive into the Foundation of AI Coding Tools

Written By:
Founder & CTO
June 9, 2025

Large Language Models (LLMs) are the cornerstone of the current wave of innovation in AI-powered software development. They serve as the computational brains behind modern AI coding tools, enabling everything from AI code completion and AI code review to intelligent coding assistance. But what exactly are LLMs, and why are they considered the backbone of AI in software development?

Large Language Models are AI models trained on massive datasets,comprising not only natural language from books, websites, and technical papers but also code from platforms like GitHub and Stack Overflow. These models use transformer architectures, a revolutionary deep learning model structure that processes information through layers of self-attention and contextual embedding.

By learning the statistical patterns in human and programming languages, LLMs become capable coding agents,offering intelligent support to developers across languages like Python, JavaScript, TypeScript, Rust, Go, and many others. Their ability to process long contexts through extended context windows means they can understand your code holistically,not just locally.

Inside the Architecture: How Transformers Make LLMs Smart

At the heart of every powerful Large Language Model lies the transformer architecture. Introduced in the 2017 paper “Attention is All You Need,” the transformer has become the de facto standard for training models like GPT-4, Claude, Gemini, and others.

Let’s break down why transformers are so important:

  • Self-Attention Mechanism: Self-attention allows LLMs to weigh the relevance of every other token in a sentence or code block relative to a given token. This is what enables intelligent code completion that actually understands the broader function you're working in,not just the last few lines.

  • Multi-Head Attention: Rather than a single lens of focus, transformers use multiple attention heads to capture different aspects of code,like syntax, style, variable naming, and function structure. This makes them particularly good at producing AI code suggestions that feel "native" to your existing project.

  • Positional Encoding: Since transformers don't inherently understand order, positional encoding is used to preserve the structure of sequences,critical when generating or reviewing code where order matters. A misplaced bracket or reversed logic can be the difference between clean execution and a runtime bug.

  • Feedforward Neural Networks & Residual Layers: These allow the model to process representations in parallel and maintain long-term gradients across deep networks, helping them handle long codebases without degrading performance.

  • Layer Normalization: Helps maintain stable learning and generalization, particularly important as context windows grow longer in newer models like Gemini 1.5 Pro and Claude 3 Opus.

When all these mechanisms work together, they make LLMs not just "autocomplete on steroids," but fully capable AI coding agents with deep reasoning capabilities.

The Power of Context Windows in Modern LLMs

One of the most important,and often underestimated,features of a modern Large Language Model is its context window size.

The context window refers to the number of tokens (words, code symbols, etc.) that an LLM can consider at once. Older models might have had 2,048-token limits, while new models like Claude 3 Opus or Gemini 1.5 Pro can handle context windows of 100,000 to even 1 million tokens.

Why does this matter?

  • Cross-file Intelligence: Developers often work in modular environments. A long context window enables AI code tools to see how functions, classes, and modules interconnect,even across separate files.

  • Enhanced AI Code Review: Reviewing only the lines of a pull request without understanding the surrounding project is limited. A larger context window allows for contextually rich reviews that flag integration issues, style inconsistencies, and logical flaws.

  • Documentation Awareness: LLMs can consider in-file and external documentation, comments, and usage patterns,producing more accurate code completions and intelligent refactors.

The transformer architecture makes it technically feasible to scale these context windows efficiently, reinforcing why LLMs are the optimal architecture for coding agents.

Key Applications: How LLMs Empower AI Coding Tools

Let’s explore how Large Language Models manifest in real-world developer workflows:

1. AI Code Completion

Modern IDEs like VS Code, JetBrains, and even browser-based tools now offer AI code completion that anticipates your next lines of code. But what makes LLM-based completion better?

  • They're trained on diverse open-source repositories, understanding libraries, frameworks, and idiomatic code patterns.

  • They can infer logic from function names, comments, and even commit messages.

  • They generate boilerplate code (e.g., form validation, REST endpoints) with shocking accuracy and context-awareness.

2. Intelligent Coding Assistance

Beyond code completion, intelligent coding assistance includes:

  • Generating tests from source code

  • Refactoring suggestions with context-aware improvements

  • Filling in TODOs with relevant code snippets

  • Descriptive docstrings based on implementation

These aren't just "assistants"; they're increasingly becoming autonomous coding agents, minimizing manual overhead and speeding up delivery.

3. AI Code Review

Some platforms now integrate LLMs for code review, scanning for:

  • Bugs and anti-patterns

  • Security issues (e.g., unsafe input handling)

  • Performance bottlenecks (e.g., O(n^2) nested loops)

  • Style guide violations

This allows teams to catch issues early, reduce reviewer fatigue, and maintain high code quality.

LLMs vs Traditional Coding Tools

Before LLMs, tools like static analyzers, linters, and rule-based auto-completion engines were the norm. But they had limitations:

  • No understanding of the broader project context

  • Limited or no natural language capability

  • No adaptability to unique project conventions

  • No semantic understanding

In contrast, Large Language Models bring transformer-powered, context-sensitive, semantically rich intelligence to every step of the software development lifecycle,from planning and prototyping to testing and deployment.

How Modern LLMs Like Claude, Gemini & GPT Are Evolving

Not all LLMs are created equal. Let’s briefly compare some of the top players based on public benchmarks and developer experience:

  • OpenAI GPT-4: Known for performance, widely used in tools like GitHub Copilot, strong in code reasoning and summarization.

  • Anthropic Claude 3 Opus: Incredible context window (up to 1M tokens), good for understanding very large codebases or documentation-heavy projects.

  • Google Gemini 1.5 Pro: Fast, multi-modal, strong for end-to-end code workflows, and exceptional at using documentation plus test suites.

As these models evolve, they’ll continue adding features like multi-agent collaboration, retrieval-augmented generation (RAG), and real-time debugging integrations, making them indispensable coding agents for modern developers.

In conclusion, Large Language Models, especially those based on transformer architectures, are redefining software development. From AI code completion and intelligent coding assistance to automated code review, they offer unmatched productivity, accuracy, and reliability.

By understanding their core mechanics,transformers, context windows, multi-head attention, and positional encoding,developers can better leverage these tools, not as replacements, but as force multipliers.

As the ecosystem of AI coding tools continues to mature, one thing is clear: LLMs are not just a feature; they are the infrastructure, the engine, and indeed, the backbone of modern AI in software development.

Connect with Us