Glossary
Token
What is a token?
A token is the unit of text an AI model reads and writes, roughly three-quarters of an English word. Providers price usage per million input tokens and per million output tokens.
Why it matters
Token prices can vary about tenfold between a provider’s largest and smallest models, but token price alone doesn’t tell you what a task costs.
Example
At $10 per million input tokens, reading a 3,000-token support ticket costs three cents.