Plain-language explainer
Tokens and tokenization, explained
What is a token, and why do AI models count tokens instead of words?
A token is a chunk of text, often a word-piece rather than a whole word. Before a model can read your text it splits it into tokens and maps each to a number. Models bill and budget in tokens, not words, because tokens are the real unit they process. The same idea can cost more or less depending on how it splits: common English words are one token, while code, rare words, and many non-English languages break into more tokens per word.
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What people get wrong
- A token is a word. Often it is a fragment, so 100 words is rarely 100 tokens.
- Token count tracks character count. It tracks how the text splits, which is why code and some languages cost more.
- Tokenization is a detail you can ignore. It drives cost, context limits, and even some odd model mistakes.
Where you see it in real products
- API pricing is per token, in and out.
- Context limits are measured in tokens, so tokenization decides how much fits.
- Multilingual apps can be quietly more expensive because some languages tokenize into more pieces.
Common questions
- Why do models struggle to count the letters in a word?
- They never see letters. A word like strawberry may arrive as two or three tokens, so asking how many r's it holds is like asking someone to spell a word they have only ever heard. Models get it right more often now because they have seen the question, not because they learned to spell.
- How many words is 1,000 tokens?
- Roughly 750 words of ordinary English. The ratio gets worse for code, rare names, and languages the tokenizer was not tuned for, where one word can cost several tokens. The same paragraph in Spanish often costs more tokens than in English.
- Do all models use the same tokens?
- No. Each model family ships its own vocabulary, so one sentence has a different token count on different models. Since prices are quoted per token, comparing two providers on price per token alone is misleading until you compare how each splits your actual text.
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