Core Concepts
Token
Definition
The basic unit of text that language models process. A token is roughly 3-4 characters or about 75% of a word in English. Models read and generate text as sequences of tokens, and pricing is typically based on the number of tokens processed.
In Plain English
Think of tokens as the "syllables" that AI reads. The word "hamburger" might be split into "ham", "bur", "ger" — three tokens. AI companies charge based on how many tokens you use, like paying per word.