top of page
Search


Tokenisation in AI/LLMs: How It Works and How Pricing Is Calculated
Artificial Intelligence models like OpenAI GPT and Anthropic Claude are widely used in applications such as chatbots, automation tools, content generation, analytics, and more. These models do not process text the way humans read it. They work with tokens . Understanding tokenisation is essential because it directly affects: 💰 Cost ⚡ Performance 📏 Input and output limits 🔹 What is Tokenisation? Tokenisation is the process of breaking text into smaller units called tokens .

Siddhesh Kadam
3 min read
bottom of page
