token — The chunk of text a model reads and writes in — roughly three-quarters of a word — and the unit AI usage is billed in.
context window — The maximum amount of text a model can consider at once — its working memory for the current conversation or task.
tool use — A model's ability to call external functions — run code, search the web, edit files — instead of only generating text.
prompt caching — Reusing the model's processed form of a repeated prompt prefix so subsequent calls skip re-reading it, cutting cost and latency substantially.
Key quotes
“Its new architecture processes input and generates output with separate components, reducing the active computation needed for each stage.”
