Glossary · Model mechanics
Token
Also said as
tokenstoken pricingAPI tokens
A token is a chunk of text — roughly three-quarters of a word — and it's the unit AI companies meter and bill by, especially through APIs.
Why it matters to your business
Subscription plans feel flat, but API and usage-based billing run on tokens — an Enterprise seat fee can be just the door, with usage billed separately.
The catch · what vendors don't say
Long documents, conversations, and images all consume tokens — the meter runs on input as well as output, which is where 'unlimited' plans quietly aren't.