Understanding Tokens in ChatGPT

Manav Kumar
3 min readSep 13, 2023

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Tokens are the fundamental units of text in ChatGPT and other similar language models, such as GPT-3.5. They play a critical role in measuring the length of input and output text, determining billing costs, and ensuring that your conversations fit within the model’s limitations. In this article, we’ll delve into the world of tokens and explore how they impact your interactions with ChatGPT.

What Is a Token?

A token, in the context of language models like ChatGPT, can be thought of as a unit of text. It can be as short as one character or as long as one word in English. However, tokenization is language-dependent, and token lengths may vary in other languages. Let’s illustrate this with an example:

Consider the sentence: “ChatGPT is great!”

This sentence is encoded into six tokens: [“Chat”, “G”, “PT”, “ is”, “ great”, “!”]. Here’s how the breakdown looks:

“Chat” is a token.
“G” is a token.
“PT” is a token.
“ is” (with a leading space) is a token.
“ great” (with a leading space) is a token.
“!” is a token.
Tokens can include not only words but also punctuation and spaces, which can affect how you count them in a given text.

Counting Tokens

Counting tokens is essential when working with ChatGPT. You need to be aware of the number of tokens in your input and output for various reasons, including billing and staying within the model’s token limit. Here’s how you can count tokens:

Using Libraries: OpenAI provides a Python library called Tiktoken, which allows you to count tokens in a text string without making an API call. You can find this library on GitHub and use it to analyze your text’s token count.

API Response: When you make API calls to ChatGPT, the API response includes a usage field that tells you how many tokens were used in the request. This information helps you track your token consumption.

Token calculation. Reference from OpenAI tokenizer tool

Input and Output Tokens

Both input (your prompt or conversation history) and output (the model’s response) tokens count toward your token usage. For instance, if your input message uses 10 tokens and the model’s response generates an additional 15 tokens, you’ll be billed for a total of 25 tokens.

Token Limit

ChatGPT models have a maximum token limit, which is typically around 4096 tokens for GPT-3.5 models. This limit means that if your conversation exceeds this token count, you will need to truncate or omit parts of the text to make it fit. Be cautious when removing messages from the input, as the model loses all knowledge of them.

Billing

Your usage of tokens directly affects the cost of using ChatGPT. You are billed based on the total number of tokens used in your API call. Longer conversations with more tokens will incur higher costs. Therefore, it’s essential to manage your token usage effectively to control expenses.

Managing Token Usage

To manage token usage and ensure your conversation fits within the model’s token limit, consider the following strategies:

Truncation: Remove less relevant or older messages from the conversation while retaining the context necessary for the model to generate meaningful responses.

Shorter Text: Keep your messages concise and to the point to reduce token consumption.

System Messages: Use system-level instructions like “[SUMMARIZE]” to guide the model’s behavior in generating responses.

Special Tokens

Some tokens serve special purposes in ChatGPT. For example, the “\n” token indicates a new message in a conversation, helping the model distinguish between different messages. System-level instructions, such as “[SUMMARIZE]”, are also encoded as tokens and can influence the model’s behavior.

To further explore tokenization, you can use interactive tool Tokenizer tool, which allows you to calculate the number of tokens and see how text is broken into tokens.

In conclusion, tokens are the building blocks of text in ChatGPT and similar language models. Understanding how tokens work, counting them accurately, and managing their usage is crucial for controlling costs and ensuring your conversations remain within the model’s token limit. As you navigate the world of AI-generated text, keep tokens in mind as a fundamental unit of measurement and interaction.

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