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Generative AI · Glossary

Token

A chunk of text — roughly a word or part of a word — that a language model processes as a single unit.

LLMs don't read text character by character; they break it into tokens first. Understanding tokens matters for cost (usage is often priced per token) and context limits.

Want to actually work with Token? This concept is covered hands-on in our AI Engineering Foundations program — not just defined, but practiced.
View AI Engineering Foundations
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