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Fundamentals Glossary

Token

A chunk of text, roughly a word or part of a word, that a language model reads and generates.

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Language models do not see whole words or characters; they work with tokens. A token might be a short word, a common word ending or punctuation. "Unbelievable" could split into several tokens. Token counts matter because they determine context limits, pricing and generation speed. Providers usually bill by the number of input and output tokens.

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