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AI Agents

What are Tokens?

The chunks of text a model reads and writes — roughly half to three-quarters of a word each, depending on the tokenizer — and the unit you're billed and rate-limited by.

How it works

Models don't see characters or words; they see tokens. Your prompt, the history, and the output all consume tokens, and the context window is measured in them. Understanding tokens is how you reason about cost and limits.

Example

In practiceA 1,000-word article is roughly 1,300-1,800 tokens depending on the tokenizer; that plus your instructions has to fit under the context window on every call.

Why does cost spike on long tasks?

Every loop iteration resends the full history, so tokens compound. Cap iterations and keep tool results tight.

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