No they don’t hallucinate that much.
Since paper this is one of the most important inventions. It has almost infinite knowledge and you can ask it anything mostly.
You're absolutely right!
On a more serious note, if it has almost infinite knowledge, is it even a cognitive-offloading tool in the same class as paper? Sounds more like something designed to stifle and make my thoughts conform to its almost infinite knowledge.
edit: I'll admit ChatGPT is a great search engine (and also very hallucinatory depending on how much you know about the subject) and maybe it helps some people think, sure. But beyond a point I find it actually harmful as a means to develop my own ideas.