What Are Tokens and Why Your LLM Bill Depends on Them
Learn what tokens really are, why they're not words, and how understanding tokenization saves you money on LLM API costs.
Feb 1, 20269 min read28

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Learn what tokens really are, why they're not words, and how understanding tokenization saves you money on LLM API costs.

I'm building an AI agent from scratch—no frameworks, no abstractions—specifically to understand where every token goes and how much it costs. This is Phase 3 of my token economics research. Phase 1 covered basic tool calling mechanics. Phase 2 reveal...

I've been building an AI agent from scratch. No frameworks, no abstractions, to understand where every token goes and what drives cost at scale. In previous post/phase, I measured how tool definitions and conversation depth impact token usage. The fi...
