Tokens

Tokens are the fundamental units of text that large language models, such as Claude, process and generate. They represent small chunks of text, typically consisting of individual words, subwords, or punctuation marks, which the model breaks input into before processing. This tokenization process converts raw language into standardized units that the underlying neural network can interpret and manipulate.

Understanding tokens is essential when working with AI agents and Claude Skills, as token usage directly impacts both the cost and performance of API calls. Each token corresponds to a specific segment of the input or output, and the total count determines the resource consumption for a given interaction. Efficient token management is therefore critical for optimizing the functionality and economic viability of agent-based workflows.

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