How Does AI Foundations: Tokens & Pricing Work?

AI Foundations: Tokens & Pricing is like counting how many blocks you use to build a tower, each block is a token, and depending on how many blocks you need, it costs more or less.

Imagine you're playing with building blocks. Each time you stack one up, that's a token. If your tower has 10 blocks, that’s 10 tokens. Now, if you’re using special blocks (like colored ones), they might cost a little more than the regular white ones, just like how some tokens cost more than others in AI.

Think of tokens as pieces of a sentence. A word is one token, and sometimes a part of a word counts as one too. So if you say “Hello, world!” that’s two tokens: “Hello,” and “world!”

Pricing is like how much it costs to use your blocks. If you’re building with regular blocks, it might cost $0.01 per block. But if you're using glittery ones (like fancy tokens), it could cost more, say $0.10 per block.

So when you ask AI a question or tell it what to do, it breaks your message into tokens, and then the price depends on how many of them you use. Simple!