What are AI Credits and Tokens?
Units of measurement and payment for AI API usage, representing computational resources consumed by AI operations.
Definition
Credits and Tokens in AI are units of measurement used to quantify and bill for API usage, representing the computational resources consumed when processing text, generating responses, or running AI models.
Purpose
Credits and tokens provide a standardized way to measure AI usage costs, allowing users to understand and predict expenses while enabling providers to fairly charge for computational resources.
Function
Tokens typically represent pieces of text (words, subwords, or characters) that the AI processes, while credits may represent broader computational units. Both are consumed during AI operations and deducted from user accounts.
Example
OpenAI charges per token - roughly 4 characters per token. A 1000-word article might consume ~1,300 tokens for input processing and additional tokens for response generation, with costs varying by model complexity.
Related
Connected to API Pricing, Usage Metrics, Computational Resources, Token Economics, and AI Service Models.
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