BETA
Output tokens are the tokens a model generates in its response, usually billed at a higher rate than input — often three to five times more per token.
Generation is sequential: the model produces one token at a time, and each new token requires a full forward pass conditioned on everything before it. That makes output tokens more expensive to serve than input tokens, and provider price lists reflect it with a markedly higher output rate.
Reasoning models add a twist: the internal thinking they perform before answering is billed as output tokens even when the reasoning text is hidden or summarized. A short final answer can therefore carry thousands of billed output tokens behind it, which is why reasoning modes can multiply the cost of a request.
Controlling verbosity — through instructions, max output limits, and structured formats — is a direct cost lever, since every unnecessary sentence in a response is paid at the highest rate on the price sheet.
Last revised 2026-07-05 · All glossary terms → · Live AI model pricing →