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AI Support & Agents

Tokens (LLM)

Definition

Tokens are the small chunks of text — words, parts of words, or characters — that a language model reads and generates; they're the fundamental unit models use to measure input, output, context limits, and usually billing.

Also known as: LLM tokenstext tokenssubword tokens

How it works

Before a model processes text, a tokenizer splits it into tokens. Common words may be a single token while longer or rarer words break into several ("tokenization" might become "token" + "ization"). As a rough rule of thumb for English, one token is about four characters, or roughly ¾ of a word — so 1,000 tokens is around 750 words.

The model reads tokens as input and produces tokens as output. Both count toward the context window, and most LLM APIs price usage per token, split between input and output rates.

Why it matters for support

Tokens are the unit of cost and capacity for any LLM-based system. Long ticket threads, large retrieved documents, and verbose prompts all consume more tokens — which is why concise prompts and targeted retrieval keep both latency and API cost down.

Frequently asked

How many words is a token?

For English, one token averages roughly ¾ of a word — about four characters. So ~1,000 tokens is around 750 words, though it varies with the exact text and tokenizer.

Why are LLMs billed per token?

Tokens are the actual unit a model processes, so token count is the most direct measure of the compute a request uses. Providers typically charge separate rates for input and output tokens.

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