Tokens are the units models process roughly 4 characters or three-quarters of a word in English. API pricing is per-token (input + output). Longer prompts consume more tokens and increase latency. Always profile token usage in production; use streaming to improve perceived latency for long outputs.
Back to All Posts
Jun 9, 2026 3:29:52 PM
Jun 9, 2026 3:29:52 PM
What are tokens and how do they affect cost and performance?
Trusted by enterprises building the future
Add Comment