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This lecture covers the historical development of artificial neural networks, starting with the threshold logic unit and the perceptron. The instructor explains the training algorithm for the perceptron, focusing on the gradient descent method. The lecture then introduces the multi-layered perceptron, discussing its architecture, activation functions, and the backpropagation algorithm. The importance of feature design and the limitations of linear models are also addressed. The instructor demonstrates how a multi-layered perceptron can approximate any continuous function and the challenges in interpreting its operations.