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AI glossary

Cost per million tokens

The unit price of running AI in production.

Providers bill per million tokens, quoted separately for input and output. It is the number that decides whether a product's unit economics work.

Prices for a given capability level have fallen steeply and repeatedly, while frontier prices stay high — so the same feature gets cheaper each year if you are willing to move down a model tier.

Estimating a real bill means multiplying by requests, average prompt length and, critically, the output length you allow.

Calculators
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