---
type: Glossary Term
title: Tokens (in LLMs)
description: "The basic units of text that LLMs process, typically words or parts of words. Token consumption refers to the number of tokens used for both input and output, i"
resource: "https://www.contextstudios.ai/glossary/tokens-in-llms"
category: tech
language: en
timestamp: "2026-07-01T15:04:52.443Z"
---

# Tokens (in LLMs)

The basic units of text that LLMs process, typically words or parts of words. Token consumption refers to the number of tokens used for both input and output, impacting cost and performance.

## Business Value

Implements tokens (in llms) to unlock new capabilities that weren't possible with previous-generation AI architectures.

## Context Studios Perspective

We stay at the cutting edge of tokens (in llms) to give our clients first-mover advantage with the latest AI capabilities.