Dev Tools · 2h ago
How LLM Tokens Work and Why They Drive Your AI Bill
LLMs don't read words; they read tokens—chunks of text mapped to integers. Tokenization explains why costs surprise users: long prompts, conversation history, and verbose outputs all increase token count. Understanding tokens is key to managing AI API expenses.
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A clear, practical explainer that demystifies token-based pricing—essential reading for developers and businesses using LLM APIs.
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