What is an AI Token:

Tokens are pieces of text, which can be as small as a single character or as large as a whole word. For example, the word "chatbot" is one token, while the sentence "The AI is smart." consists of five tokens: "The", "AI", "is", "smart", ".".
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Each LLM like GPT4o has a cost per token.
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- GPT 4o charges $5 per 1 Million INPUT tokens.
- GPT 3.5 charges $0.5 per 1 Million INPUT tokens.
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Output tokens also have their own cost.
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- GPT4o charges $15 per 1 Million OUTPUT tokens.
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The more information you are sending to the LLM and the more information the LLM is sending back to you, the more it costs.

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