Chapter 2 · LLM Fundamentals
AI Tokens Explained: Free Beginner Lessons
The tiny pieces models read, and why length and cost depend on them.
- Lesson 1
What Is a Token in AI? Tokens Explained Simply
Tokens are the small chunks of text AI models read and write. Learn what a token is and the rule of thumb: one token is about four characters.
- Lesson 2
How Many Tokens Is a Word? Counting AI Tokens
Estimate token counts fast: about 0.75 words per token in English. Learn why names, code, and other languages use more tokens.
- Lesson 3
Context Window Explained: Why AI Forgets
What is a context window in AI? Learn what counts toward the limit, why long chats make models forget, and what bigger windows really change.
- Lesson 4
AI Token Pricing: Input vs. Output Tokens
How AI APIs charge per token, why output tokens usually cost more, and simple ways to cut costs without losing useful context.
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