Definition
Tokenization
Breaking text into small units called tokens, such as words, word pieces, or characters, that a language model can process.
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Related terms in AI Fundamentals
The AI Factory EffectThe dynamic in which AI compresses delivery timelines but scope expands to fill the gap. Teams don't get time back — they ship more. MVPs complete faster, then continue into features, architecture, and automation. Same headcount. Same contract. Dramatically more output. First observed clearly in 2025: what used to take 3–4 months now takes half that, but projects don't end early — expectations rise to match the new pace.TokenThe unit models read and write. You pay per token, which is why volume tasks add up.Token maxerAn AI maximalist. In a panel context, five of them in a row makes for a boring hour.Token spendThe compute cost of running large AI models, which Tal cut by building his own model.TokenomicsThe unit economics of AI usage, measuring cost per token against productivity produced.TraceabilityThe ability to follow an AI decision back to the data and logic behind it.Traditional AIEarlier AI built on explicitly programmed rules, logic, and human-written knowledge rather than learning from data.Training dataThe examples, like text, images, or audio, used to teach a machine learning model how to do its task.