Token — The basic unit AI models process. Roughly 1 token = 0.75 words in English. ‘Hello world’ = 2 tokens. Pricing, context windows, and speed are all measured in tokens. GPT-4o: $2.50/1M input tokens. Claude Sonnet: $3/1M input tokens.
Why It Matters
Understanding Token is essential for anyone building or evaluating AI systems. As AI tools proliferate, knowing the fundamentals helps you make better decisions about which tools to trust and deploy.
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