Large language models (LLMs) were trained to predict words without having explicit semantic word representations as humans do. Here we compared LLMs and humans in re-solving semantic ambiguities at the word/token level by ex-amining the case of segmenting overlapping ambiguous strings in Chinese sentence reading, where three characters “ABC” could be segmented in either “AB/C” or “A/BC” depending on the context. We showed that although LLMs performed worse than humans, they demonstrated a similar interaction effect between segmentation structure and word frequency order, suggesting that this effect observed in humans could be accounted for by statistical learning of word/token occurrence regularities without assuming an explicit semantic word representation. Nevertheless, across stimuli LLMs' responses were not correlated with any hu-man performance or eye movement measures, suggesting differences in the underlying processing mechanisms. Thus, it is essential to understand these differences through XAI methods to facilitate LLM adoption.