Large Language Models (LLMs) do not process raw text but instead convert it into numerical representations called tokens. This tokenization process, often using algorithms like byte-pair encoding, is fundamental to how models like ChatGPT, Claude, GPT-4o, and Llama interpret input and generate output. Understanding tokens is crucial for managing costs, as billing and context limits are based on token counts rather than characters or words. The process involves converting text to tokens, the model processing these numerical sequences, and then decoding the output tokens back into human-readable text. AI
IMPACT Understanding tokenization helps users write more efficient prompts and manage AI service costs.
RANK_REASON The item explains a technical concept about LLM processing rather than announcing a new model or product.
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