Token

What is Token?
A token is a small piece of text that AI reads and writes, such as a word, part of a word or a punctuation mark. AI prices and limits are counted in tokens.
A token can be a word, part of a word or a punctuation mark. Vietnamese with its diacritics usually takes more tokens than English for the same idea. The more text you send, the more it costs.
Token in a shop
Pasting a 200-page catalogue into every reply costs many times more than sending only the relevant part.
How does Token work?
- 1Before reading, the AI cuts text into small pieces called tokens: sometimes a whole word, sometimes part of a word or a punctuation mark.
- 2The prompt, attached documents and chat history all count as input tokens.
- 3The answer the AI writes counts as output tokens, usually priced higher than input.
- 4AI prices and the limit of each session (the context window) are both measured in tokens.
What a shop or café can use it for
- Estimating chatbot costs: messages per month times average tokens per exchange.
- Seeing why pasting the whole catalogue into every question makes the AI bill jump.
- Choosing an AI plan that matches real use rather than the biggest one.
What to watch out for
- Vietnamese with accents often uses more tokens than English for the same idea.
- The longer the conversation, the more each turn costs, since the AI rereads the history.
- When comparing services, compare both input and output token prices.
Quick questions
It varies by language and model. In English a token is usually shorter than a word; Vietnamese with accents tends to need more tokens for the same number of words.
Send only relevant passages (RAG), keep prompts tight, start a new chat when the topic changes, and cap the answer length.
Consumer subscriptions usually do not charge per token but do limit usage. Tokens matter when you pay through an API, for example for a shop chatbot.
Keep learning beyond the glossary
Read next
- BasicsContext windowA context window is how much text an AI can see in one go: the prompt, the documents and the conversation so far.
- BasicsLarge language model (LLM)A large language model (LLM) is the text brain behind ChatGPT, Gemini and Claude: it predicts the most likely next word, one word at a time.