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Course contents

  • Getting Started with AI for VLSI Engineers5
  • Just Enough AI: Models and Context15
    • What a Language Model Does
    • Tokens and Tokenization
      • Tokens, Words and Characters
      • Subword Tokens and Byte-Pair Encoding
      • Why Some Text Costs More Tokens
      • Approximate Rules of Thumb
      • Estimating Tokens Before Sending
    • Context Window and Attention for Users
  • Prompting13
  • Trust and Verification14
  • Using AI for Engineering Work17
  • Engineering Walkthroughs7
  • Practical Foundations for AI Workflows4
  • Engineering Data5
  • Retrieval-Augmented Generation6
  • Agents and Tool Use18
  • Agent Design8
  • MCP and Skills6
  • Multi-Agent Design6
  • Practical Capstone6
  • Tokens, Cost and Latency12
  • Agentic Workflows for Chip Teams18
  • Interview and Judgment10
  • AI Skills: Full Course Index
  • Working with AI Glossary
  • Working with AI Cheatsheet
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‹Just Enough AI: Models and Context
  1. Topics
  2. AI Skills for VLSI Engineers
  3. Just Enough AI: Models and Context
  4. Tokens and Tokenization

Just Enough AI · Beginner to Intermediate

Tokens and Tokenization

What tokens are, how subword splitting works, and how to estimate tokens before sending.

  • 5topics
  • 5lessons

A model reads text as tokens, which are subword pieces cut by a fixed splitting rule. Token counts govern cost and fit, so this topic teaches counting, splitting and estimation.

Unit

Meaning

Character

One text character. It is stable across tools, but a model does not consume it directly.

Word

A whitespace-separated span. It is a rough human unit, not a model unit.

Token

One subword piece the model consumes. Its boundaries vary by model, so measure them.

Text to tokens to model.
Text is cut into tokens by a fixed rule before a model reads it (schematic).

Lesson

What it covers

Tokens, words and characters

Three units compared, with counts on short fixed examples.

Subword tokens and byte-pair encoding

The merge idea plus a small runnable trainer.

Why some text costs more tokens

Code, identifiers, numbers and other scripts split shorter.

Approximate rules of thumb

Chars-per-token ranges, stated as approximate and variable.

Estimating tokens before sending

Count characters, divide by a stated rate, add margin.

Check yourself A prose file holds 12000 characters. Why is its token count still only approximate before measuring?

Chars per token is approximate and tokenizer-dependent. A quotient is a range until measured on the actual splitter, so the count varies by model.

Interview

Carry one sentence per lesson: tokens are model pieces, merges build them from pairs, code and numbers split shorter, rates are approximate ranges, and estimates divide characters by a stated rate with margin.

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See also

  • What a Language Model Does
  • Context Window and Attention for Users