It does a shockingly good analogue of “understanding” at the very least. Have you tried asking chatgpt to solve analogies? Those show up in all kinds of intelligence tests.
We don’t have agi, definitely, but this stuff has come a very long way and it’s quite close to being genuinely useful.
Even if we completely reject the “it’s ai,” we more or less have a natural language interface for computers that isn’t a shallow trick and that’s awesome.