AI Tokens
A concept introduced by Philippe Laffont to represent the massive, exponential growth and economic impact of AI computation (tokens), suggesting it is a more significant long-term trend than the economic disruption from tariffs.
entitydetail.created_at
7/20/2025, 4:21:05 AM
entitydetail.last_updated
7/22/2025, 4:48:45 AM
entitydetail.research_retrieved
7/20/2025, 4:32:14 AM
Summary
AI Tokens are fundamental units of data in Artificial Intelligence, particularly crucial for Large Language Models (LLMs) and Natural Language Processing (NLP). They represent words, characters, or phrases, enabling AI algorithms to process, understand, and generate human language. This technological concept is driving significant disruption in the tech industry, considered by figures like Philippe Laffont to be more impactful than traditional economic factors such as tariffs. Its influence is evident in the intense competition between major tech companies like Google and OpenAI, with the growth of firms like Microsoft being attributed to this trend, potentially reshaping market leadership.
Referenced in 1 Document
Research Data
Extracted Attributes
Function
Enable AI models, particularly Large Language Models (LLMs), to understand, process, and generate human language by breaking down input into smaller units (tokenization).
Definition
Fundamental units of data processed by AI algorithms, especially in Natural Language Processing (NLP) and Machine Learning services. They represent components of larger datasets like words, characters, or phrases.
Distinction
Not to be confused with AI crypto tokens, which are cryptocurrencies used to power AI services on blockchain platforms.
Significance
Considered a major technological trend driving disruption in the tech industry, with impact potentially exceeding that of tariffs.
Measurement Use
Used to estimate processing time and costs in AI models.
Primary Application
Large Language Models (LLMs), Generative AI, chatbots, text processing, sentiment analysis, language translation.
Timeline
- AI Tokens are identified as a major technological trend driving disruption in the tech industry, leading to intense competition between companies like Google and OpenAI and influencing market leadership. (Source: Related Documents)
Ongoing
Wikipedia
View on WikipediaLarge language model
A large language model (LLM) is a language model trained with self-supervised machine learning on a vast amount of text, designed for natural language processing tasks, especially language generation. The largest and most capable LLMs are generative pretrained transformers (GPTs), which are largely used in generative chatbots such as ChatGPT, Gemini or Claude. LLMs can be fine-tuned for specific tasks or guided by prompt engineering. These models acquire predictive power regarding syntax, semantics, and ontologies inherent in human language corpora, but they also inherit inaccuracies and biases present in the data they are trained in.
Web Search Results
- What is a Token in AI? Unraveling Concepts - Miquido
In summary, AI tokens are basic yet powerful units of data in AI development. They are foundational elements that allow algorithms to process and learn from various data types, such as text, images, and sounds. The token AI concept is crucial for various AI applications, from simple text processing to complex tasks involving understanding context and subtleties in human language. Ready to discover more terms? [...] Tokens play an essential role in AI systems, particularly in machine learning models that involve language tasks. In such models, AI tokens serve as inputs for algorithms to analyse and learn patterns. For instance, in achatbot development, each word in the user’s input is treated as an AI token, which helps the AI understand and respond appropriately. It is also important to count tokens in text to estimate processing time and costs, as different tokenization methods can affect the count. [...] In the field of AI, a token is a fundamental unit of data that is processed by algorithms, especially in natural language processing and machine learning services. A token in AI is essentially a component of a larger data set, which may represent words, characters, or phrases. For example, when processing text, a sentence is divided into tokens, where each word or punctuation mark is considered a separate token in AI. This process of tokenisation is a crucial step in preparing data for further
- What Are AI Tokens in Crypto? Use Cases, Benefits & Risks
What Are AI Tokens? ------------------- AI tokens are cryptocurrencies typically used to power artificial intelligence (AI) services on blockchain platforms. You can use them to pay for access to AI tools and models. These tokens connect blockchain technology with machine learning and automation. [...] Important: AI tokens in this article refer to crypto tokens, not to be confused with AI tokens used in natural language processing. In machine learning, a “token” is a small unit of text, like a word or character. For example, NVIDIA defines AI tokens as parts of language that help AI models understand and generate responses. That is not what we’re discussing here. Image 39 [...] AI crypto tokens are used as the fuel for AI-powered platforms built on blockchain. These tokens matter because they create a clear way to access AI services without relying on centralized systems. When you pay in AI tokens, you’re directly interacting with smart contracts that trigger artificial intelligence models, data services, or automated tools.
- Top AI & Big Data Tokens by Market Capitalization - CoinMarketCap
| | | IQ IQ | $0.00 | | | | | dKargo DKA | $0.02 | | | | | Delysium AGI | $0.06 | | | | | iExec RLC RLC | $1.16 | | | | | Chromia CHR | $0.10 | | | | | Saga SAGA | $0.30 | | | | | AI Companions AIC | $0.11 | | | | | SUPRA SUPRA | $0.00 | | | | | Arcblock ABT | $0.79 | | | | | 0x0.ai 0x0 | $0.09 | | | | | PinLink PIN | $0.87 | | | | | Pythia PYTHIA | $0.08 | | | | | Artificial Liquid Intelligence ALI | $0.01 | | | | | Marlin POND | $0.01 | | [...] | | | SoSoValue SOSO | $0.62 | | | | | TARS AI TAI | $0.08 | | | | | Numeraire NMR | $8.93 | | | | | Newton Protocol NEWT | $0.31 | | | | | Solidus Ai Tech AITECH | $0.04 | | | | | Tagger TAG | $0.00 | | | | | Nillion NIL | $0.32 | | | | | DIA DIA | $0.52 | | | | | SKYAI SKYAI | $0.06 | | | | | Humans.ai HEART | $0.01 | | | | | Sleepless AI AI | $0.15 | | | | | Treasure MAGIC | $0.18 | | | | | HashAI HASHAI | $0.00 | | | | | Derive DRV | $0.07 | | [...] | | | MyShell SHELL | $0.17 | | | | | GRIFFAIN GRIFFAIN | $0.05 | | | | | Autonolas OLAS | $0.24 | | | | | Oraichain ORAI | $3.24 | | | | | Forta FORT | $0.07 | | | | | Assemble AI ASM | $0.03 | | | | | Act I : The AI Prophecy ACT | $0.05 | | | | | Chainbase C | $0.26 | | | | | Hey Anon ANON | $3.05 | | | | | Node AI GPU | $0.42 | | | | | tao.bot TAOBOT | $0.53 | | | | | siren SIREN | $0.05 | | | | | NFPrompt NFP | $0.08 | |
- Understanding AI Tokens and Their Importance - Copilot4DevOps
When talking about AI, it’s important to grasp the concept of “tokens.” Tokens are the fundamental building blocks of input and output that Large Language Models (LLMs) use. AI tokens are the smallest units of data used by a language model to process and generate text. Tokenization is how these LLMs break down your input to understand it and generate an output in human language so that it can be useful to you. This blog covers what tokens are in AI language models, their limits, and how the
- What are AI Tokens? | Microsoft Copilot
AI tokens are the base units of text that these models use to understand language. Let’s say you’ve asked Copilotto find some nice vacation spots on the coast this summer. In just a few seconds, it responds with a list of ideal places, perfect for your family getaway. How does Copilot understand your prompt and know how to respond? The answer is, in a word, tokens. In this article, we’ll discuss how Copilot and other AI models use tokens to break down input, generate responses, and more to make [...] AI tokens: The building blocks of natural language processing ------------------------------------------------------------- Tokens are the fundamental units of text that AI models use to understand and process language. In natural language processing(NLP), tokens can be words or phrases. By breaking down text into these smaller units, Copilotand other AI models can more effectively analyze language and generate responses. How does tokenization work? --------------------------- [...] The future of tokens in AI -------------------------- As AI models continue to evolve, tokenization will play a critical role in improving the quality and relevance of generated text.These advancements will have a significant impact on AI-driven tools and applications, making them more efficient and effective. For instance, improved tokenization techniques could lead to better language translation, more accurate sentiment analysis, and more coherent text generation.