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**Tokenization in Large Language Models** **What is Tokenization?** Tokenization is the process of converting raw text into discrete units called tokens that language models can process. Unlike traditional word-based approaches, modern LLMs use subword tokenization to handle rare words and multiple languages efficiently. **How BPE (Byte Pair Encoding) Works** BPE starts with individual characters and iteratively merges the most frequent pairs: 1. Start with character vocabulary: ["h", "e", "l", "o", " ", "w", "r", "d"] 2. Find most common pair: ("l", "l") → merge to "ll" 3. Repeat until vocabulary size reached (typically 32K-100K tokens) **Tokenization Algorithms Comparison** | Algorithm | Used By | Key Feature | |-----------|---------|-------------| | BPE | GPT, Llama | Frequency-based merging | | WordPiece | BERT | Likelihood-based merging | | Unigram | T5, ALBERT | Probabilistic selection | | SentencePiece | Llama, Mistral | Language-agnostic preprocessing | **Practical Implications** - **Token count affects cost**: API pricing is per token (1K tokens ≈ 750 words) - **Context limits**: Max tokens per request (GPT-4: 128K, Claude: 200K) - **Multilingual efficiency**: CJK characters often require 2-3 tokens per character - **Code tokenization**: Programming symbols may use more tokens than expected **Example Token Counts** ```python "Hello, world!" → 4 tokens "Semiconductor manufacturing" → 3 tokens "人工智能" → 3 tokens (Chinese) ``` Understanding tokenization is crucial for prompt optimization and cost management.

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