Token (AI)
Also known as: AI token unit, Text chunk
Small chunks of text that AI models read and process—roughly equivalent to 3-4 characters or one word.
Context
Most AI services charge based on tokens—both what you input (your prompt) and what the AI outputs (the response). A typical prompt might use 100-500 tokens, and the response another 500-1000 tokens. Understanding tokens helps you estimate AI costs and optimize prompts. Shorter, clearer prompts use fewer tokens and cost less.
Examples
- 1OpenAI pricing ChatGPT at $0.03 per 1,000 input tokens
- 2A 500-word email being about 650-750 tokens
- 3Checking token count before running expensive AI tasks