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What is a token in AI and why does it matter?

StarterAny assistantcost limits

A token is a small chunk of text, often a word, part of a word or punctuation mark, that a model reads and writes. It matters because limits and API costs are measured in tokens.

Rough idea: a short sentence is a handful of tokens and a page of text is hundreds. Exact counts differ between models, and providers usually offer a tokenizer tool or a token counter in their documentation.

Why you care:

  • The context window caps how many tokens the model can handle at once, including your messages, its replies and attachments.
  • API pricing is usually per token for input and output.
  • Long chats cost more and can degrade quality.

Shorter prompts and fresh chats save tokens.

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What is a token in AI and why does it matter? | Ai Me Bro