GPT and embeddings models process text in chunks called tokens. Tokens represent commonly occurring sequences of characters. For example, the string " tokenization" is decomposed as " token" and "ization", while a short and common word like " the" is represented as a single token. Note that in a sentence, the first token of each word typically starts with a space character. Check out our tokenizer tool to test specific strings and see how they are translated into tokens. As a rough rule of thumb, 1 token is approximately 4 characters or 0.75 words for English text.
One limitation to keep in mind is that for a GPT model the prompt and the generated output combined must be no more than the model's maximum context length. For embeddings models (which do not output tokens), the input must be shorter than the model's maximum context length. The maximum context lengths for each GPT and embeddings model can be found in the model index.