Understanding LLMs
Lesson 2 of 6
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Lesson 2
30 min

Tokenization and Embeddings

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Quick Summary

LLMs read text as tokens — word fragments, punctuation, or whole short words — not as characters or words. Token counts drive both your costs and what fits in the context window.

What you will learn
  • ·Understand what tokens are and why they matter
  • ·Understand the role of embeddings in representing meaning
  • ·Calculate approximate token counts for cost estimation