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What is a token in AI?

Short answer

A token is a small chunk of text, often part of a word, that an AI model reads and writes one at a time.

  • Category Models
  • Also called tokens
  • Updated 20 Oct 2026
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Token, explained simply

AI models don't see letters or whole words. They split text into tokens, like word pieces.

A short word may be one token. A long or rare word may be a few.

Tokens matter because they set how much a model can read at once and often how much a service charges.

On ITG Now, our free tool guides and model pages mention tokens when they talk about limits and costs.

Context windowLLMAPI pricingTokens per secondRate limitEmbeddings

Where you'll see it on ITG Now

Questions people ask about Token

Is a token the same as a word?

No. A token can be a whole word, part of a word or a punctuation mark.

Why do AI services charge by the token?

Tokens measure how much work the model does, so they are a fair way to price usage.

Sources

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