Ok, to really understand what’s going on we probably need multiple computer science and linguistics degrees. I’m just barely scraping the surface here. If you’ve got time to get a few degrees (or if you’ve already got them) please drop me a line and explain it all me to. Slowly.
Update 1: in my excitement, it’s fair to say that I’ve exaggerated the idea of this as an ‘intelligent’ system — at least so far as we would think about human intelligence and decision making. Make sure you read Chris McDonald’s comment after the article for a more sober perspective.
Update 2: Nafrondel’s excellent, detailed reply is also a must read for an expert explanation of how neural networks function.