Which term describes the fundamental unit of text that Claude processes, which can be a single character, a part of a word, or a whole word?
Tokens are the basic units of text for Claude. A token can represent a common word, a part of a word, or even just punctuation. Anthropic's models use a tokenizer to convert raw text into these numerical tokens, which the model then uses for inference and generation.
Why this answer
Understanding tokens is essential for grasping how LLMs like Claude process information and how costs are calculated. Tokens are the 'atomic' units of the model's vocabulary, and the efficiency of the tokenizer directly impacts the model's context window usage and pricing.
Exam trap
Candidates often confuse tokens with words or characters, forgetting that a token is an arbitrary sub-word, character, or whole word chunk defined by the model's specific tokenizer.