The Cost of AI

AI doesn't read words; it reads Tokens.

• A token is roughly 3/4 of a word.
• "Hello" = 1 token.
• "Hamburger" = 3 tokens (Ham-bur-ger).

AI companies charge by the token. It's like paying for a telegram by the letter.

• Input Cost: What you type.
• Output Cost: What the AI writes (usually more expensive).