AI glossary

What Is Token?

A small unit of text, such as part of a word, that language models process when reading or generating content.

Why it matters

Tokens affect AI cost, speed, context length, and how much information a model can consider at once.

Where you will see it

You will see Token discussed in AI news, product launches, model updates, workplace tools, developer platforms, and company strategy. Understanding the term helps readers judge what changed and whether it affects their work, customers, or daily tools.

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What Is Token? Plain-English AI Guide