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AI Glossary

What is Token (AI)?

A chunk of text (roughly 4 characters or 3/4 of a word) that AI models process.

By Council Research TeamUpdated: Jan 27, 2026

Definition

Tokens are the basic units that AI models use to process text. A token can be a word, part of a word, or punctuation. On average, 1 token ≈ 4 characters or about 0.75 words in English. AI pricing is typically based on tokens processed.

Examples

1"Hello" = 1 token
2"ChatGPT" = 1-2 tokens
31000 tokens ≈ 750 words

Why It Matters

Understanding tokens helps you estimate costs and stay within context limits.

Related Terms

Context Window

The maximum amount of text an AI can process in a single conversation.

Large Language Model (LLM)

An AI system trained on vast text data to understand and generate human-like text.

Common Questions

What does Token (AI) mean in simple terms?

A chunk of text (roughly 4 characters or 3/4 of a word) that AI models process.

Why is Token (AI) important for AI users?

Understanding tokens helps you estimate costs and stay within context limits.

How does Token (AI) relate to AI chatbots like ChatGPT?

Token (AI) is a fundamental concept in how AI assistants like ChatGPT, Claude, and Gemini work. For example: "Hello" = 1 token Understanding this helps you use AI tools more effectively.

Related Use Cases

Best AI for Coding

AI Models Using This Concept

ClaudeClaudeChatGPTChatGPTGeminiGemini

See Token (AI) in Action

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