Skip to main content

    Token

    A token is a chunk of text a language model processes at once—roughly a word or part of a word—and is the unit used for pricing and context limits.

    Share this term

    In Simple Terms

    Think of it as the smallest Lego piece the model can see or produce; pricing is per piece.

    Detailed Explanation

    Models do not read whole words; they split text into tokens. One token is often a word or subword, so token count is usually close to word count but not identical. APIs bill and limit by tokens. When it matters: when budgeting cost, designing prompts, or fitting content into a context window. Common mistakes: assuming one word equals one token, or ignoring token limits when sending long documents.

    Want to Implement AI in Your Business?

    Let's discuss how these AI concepts can drive value in your organization.

    Schedule a Consultation