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AI Tokens: The Foundation of Modern Artificial Intelligence and Emerging Global Competition

31 March 2026

AI Tokens: The Foundation of Modern Artificial Intelligence and Emerging Global Competition

AI tokens represent the smallest unit of data processed by Large Language Models (LLMs), functioning as the fundamental building blocks of AI communication. Instead of reading full sentences, AI systems break text into tokens—words, sub-words, or even characters—which are then converted into numerical representations for computation. This tokenization process enables models to predict and generate language efficiently. Typically, 1,000 tokens cor

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