Glossary

Token (AI)

A small chunk of text, roughly a word or part of a word, that an AI model processes and that usage costs are typically billed by.

A token is the basic unit an AI model reads and generates text in, roughly a word or a word fragment. Model usage is usually billed per token, which is why cost optimization is part of what AI Abstraction monitors under managed hosting; a poorly designed agent can burn through far more tokens than necessary.

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