The reason hidden units in neural nets are called hidden units is that Peter Brown told me about hidden Markov models. I decided "hidden" was a good name for those extra units, so that's where the name "hidden" comes from.
— Geoffrey Hinton, Talking Nets: An Oral History of Neural Networks (2000)
On naming 'hidden neurons', from the 2000 oral history Talking Nets.
Topics: artificial intelligence