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Tokens—numbers assigned to words and subwords—are the basic units of data that AI tools process to generate outputs that mimic language without understanding the text itself.

Findings

Additional insights we found via this resource

  1. By turning text into batches of numbers, the large language models underlying AI chatbots can use mathematical operations to find associations between words and subwords, including grammatical rules, to ensure generated text resembles real language.

  2. Providers of AI tools, including OpenAI, Anthropic, and Google, charge customers based on the number of tokens processed, including the length of prompts and generated responses.

  3. Large language models are limited to their context window or token limit—the maximum number of tokens that can be processed and kept in memory at once before parts of the conversation start being forgotten.

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