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ChatGPT & LLM AI Engineering Guide• 5 min read
Tokenization, Context Windows & Cost Control
Understand Byte-Pair Encoding (BPE), token calculation, context limits, and cost optimization techniques.
What is a Token?
LLMs do not read words or letters; they process chunks of text called Tokens. In English, 1 token is approximately 4 characters or 0.75 words. A sentence like "ChatGPT is incredible" contains roughly 4 tokens.
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Test Yourself With Exercise
Approximately how many English words does 1,000 tokens represent?