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Token

In the context of AI language models, a token is the basic unit of text that a model processes — typically a word, subword, or character depending on the tokenizer. LLM pricing, context windows, and rate limits are all measured in tokens. Understanding tokenization is essential for optimizing costs and staying within model context limits when building AI-powered applications.

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Related Terms

Chain of Thought

Chain of Thought (CoT) is a prompting technique that encourages an LLM to break down complex reasoning into intermediate steps before arriving at a final answer. By explicitly reasoning through each step, models achieve significantly better accuracy on math, logic, and multi-step problems. Extended thinking and "thinking" tokens in models like Claude represent a built-in form of chain-of-thought reasoning.

Context Window

A context window is the maximum amount of text (measured in tokens) that an LLM can process in a single interaction, encompassing both the input prompt and the generated output. Larger context windows allow models to handle longer documents, maintain extended conversations, and reason over more information at once. Context window sizes have grown rapidly — from 4K tokens in early GPT models to over 1M tokens in current models like Claude.

Computer Vision

Computer vision is a field of AI that trains machines to interpret and understand visual information from images and videos. Applications include object detection, facial recognition, autonomous driving, and medical image analysis. Modern computer vision leverages deep learning models like CNNs and vision transformers (ViT), and increasingly integrates with language models in multimodal AI systems.

Natural Language Processing

Natural Language Processing (NLP) is a branch of AI focused on enabling computers to understand, interpret, and generate human language. NLP powers applications like chatbots, translation services, sentiment analysis, and text summarization. Modern NLP has been transformed by transformer-based models, which achieve remarkable performance on tasks that previously required extensive hand-crafted rules.

ETL Pipeline

ETL (Extract, Transform, Load) is an automated data processing pattern where data is extracted from source systems, transformed into a desired format or structure, and loaded into a target system like a data warehouse. Modern variations include ELT, where raw data is loaded first and transformed in place. ETL pipelines are essential for automating data integration, reporting, and feeding clean data into ML training workflows.

Hallucination

In AI, hallucination refers to when a language model generates confident-sounding but factually incorrect or fabricated information. This occurs because LLMs predict statistically likely text rather than retrieving verified facts. Mitigation strategies include RAG, grounding responses in source documents, structured output validation, and using temperature settings to reduce creative deviation.

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