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A model never sees words, only tokens, which explains most of its odd behaviour

Matt Pocock · Most Devs Don’t Understand How LLM Tokens Work

The idea

A language model reads tokens, pieces of text that are often whole common words and often fragments of rare ones. Matt Pocock takes tokenisation from characters to subwords and shows where unusual words go wrong. Three consequences follow for anyone building on or using a model. It miscounts letters because it never saw the letters. Context has a size because the window is counted in tokens. And usage is billed in tokens, so the cost of a prompt depends on its tokenisation, not its word count. Understanding this removes most of the mystery from a model's failures and most of the surprise from its bills.

Reason about a model in tokens: that is what it reads, what fills its window and what you pay for.

When it works

Explaining how a language model works, estimating the cost of an AI feature, and debugging a model that fails at a character-level task.

When it may fail

Tokenisers differ between models, so an estimate for one is wrong for another, and the relationship between tokens and meaning is not simple. The frame explains behaviour; it does not predict quality.

How to use it

Before estimating the cost of an AI workflow, tokenise a representative input and output and multiply by the price per token. Then compare with the word count to see how far the two diverge for your data.

Where it came from

Video Most Devs Don’t Understand How LLM Tokens Work · Matt Pocock

What the source says. Matt Pocock takes tokenisation from characters to subwords, and shows where unusual words go wrong.

Open the source at 2:16 to 9:45 (opens in a new tab)Checked against the clip · reviewed 2026-10-16

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