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Anatomy of an LLM: Tokens, Weights and Parameters

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Key Takeaways

  • Large language models rely on tokens, parameters, and weights to process language, generate responses, and improve over time.
  • LLM Tokens are the fundamental units of language processing, parameters adjust how the model interprets input, and weights determine the strength of relationships between words.
  • LLM size impacts performance, with small models excelling in speed and efficiency, mid-sized models balancing accuracy and cost, and large models offering deep contextual reasoning.
  • Understanding LLM architecture helps optimize AI applications and create better AI-driven solutions across various industries.

Large language мodels (LLMs) have changed the way we interact with and think about technology. These AI-powered models drive everything from chatbots and virtual assistants to automated content generation and language translation. ChatGPT, Google Bard, and Claude are prime examples of how LLMs are integrated into daily life. But have you ever wondered what happens inside these powerful AI tools? This is where LLM tokens, weights, and parameters come into play.

These three crucial components define how models process language. Understanding these elements helps explain how LLMs interpret input, generate text, and continuously improve performance. 

In this article, we’ll take a look behind the scenes of a large language model and explore the different parameters.

What’s inside an LLM? Tokens, Weights and Parameters Overview

An LLM consists of several essential components that work together to process language and generate human-like responses. These include:

  • LLM Tokens: The basic building blocks of text processing, which help the model segment and analyze language efficiently.
  • Parameters: The adjustable settings that fine-tune how the model processes information and generates responses.
  • Weights: The learned numerical values that determine the strength of relationships between different tokens and parameters.

These elements allow an LLM to understand context, predict text, and improve performance over time. Each of them plays a unique role in shaping how AI interacts with human input.

What are LLM tokens?

Tokens serve as the basic building blocks of language processing in LLMs. AI models do not read or interpret text in the same way humans do. Instead, they break down sentences into smaller components called tokens. Consequently, tokens can represent words, subwords, punctuation marks, or even individual characters, depending on the tokenization method used.

Tokenization is crucial because it allows LLMs to process language efficiently and understand patterns, grammar, and context. The length of a token can also vary. In some models, each word is a token, while in others, tokens may be smaller units, such as syllables or even individual letters. Conversely, some models treat frequently occurring phrases as single tokens to improve efficiency.

How do AI tokens work?

When you input text into an LLM, the model first tokenizes the text by breaking it into manageable chunks. These tokens act as units that the AI can analyze, process, and predict in sequential patterns. For example, consider the sentence:

  • “AI models are changing the world.”

A word-based tokenization approach might yield the following tokens:

  • [“AI”, “models”, “are”, “changing”, “the”, “world”, “.”]

On the other hand, if a subword-based tokenization approach is used, the same sentence might be broken down into:

  • [“AI”, “model”, “s”, “are”, “chang”, “ing”, “the”, “world”, “.”]

Once tokenized, the model assigns numerical values to each token and processes them using parameters and weights. The way tokens are structured affects sentence structure, context understanding, and response accuracy.

What are LLM Parameters?

Parameters are the adjustable variables that define how a Large Language Model (LLM) processes input and generates output. These values are learned during the model’s training phase and serve as the foundation for how the AI interprets language, recognizes patterns, and formulates responses.

The number of parameters in an LLM is often a key indicator of its complexity, accuracy, and adaptability. Models with more parameters typically have a better grasp of contextual understanding, linguistic nuance, and logical reasoning, allowing them to produce more coherent and human-like text.

Depending on the number of parameters, models can be split into three main groups:

  • Small models 
  • Mid-sized models
  • Large-scale models

We’ll go over additional details about each of the groups further down.

How do LLM Parameters work?

Parameters adjust the model’s response style, tone, and coherence by shaping how it weighs different tokens in a given input. When a model processes a prompt, parameters influence which words are considered most relevant based on past training.

For example, an LLM trained to generate formal business emails will use parameter settings that prioritize politeness, professionalism, and structured sentence formats. Meanwhile, a model optimized for casual chatbot conversations will generate shorter, more relaxed sentences with informal phrasing.

By fine-tuning parameters, AI developers can optimize LLM performance for different applications, ensuring the model responds appropriately in various contexts.

What are LLM Weights?

Weights are numerical values that define the strength of connections between neurons in an LLM’s neural network. Therefore, they act as adjustment factors that influence how an LLM processes language, learns patterns, and predicts responses.

Each weight plays a crucial role in determining the importance of a word or phrase when generating text. When an LLM processes input, it assigns different weights to words based on how relevant they are to the context. Higher weights mean a stronger influence, while lower weights mean weaker importance in that particular scenario.

Without weights, an LLM would treat all words equally, making it impossible to distinguish relevant relationships or generate coherent, meaningful responses.

How do LLM Weights work?

Weights are not manually set—instead, they are learned through vast amounts of data exposure and iterative fine-tuning. The training process involves adjusting these weights so that the model can improve its predictions and language understanding over time.

Each weight influences how the model predicts the next word in a sequence based on the input provided. For example, in the phrase:

“Artificial intelligence is transforming industries like healthcare and finance.”

Weights will determine whether “healthcare” or “finance” is a more likely continuation of the sentence based on prior learning.

How to measure a Large Language Model

The size of an LLM can differ significantly based on the complexity of the task it is built to handle. Several key factors influence the overall size and power of an LLM:

  • Number of Parameters: More parameters mean more refined decision-making capabilities.
  • Training Data Volume: Larger datasets help improve contextual understanding and reduce biases.
  • Computational Power: More complex models require greater computing resources to process and generate text.
  • Memory Footprint: The amount of memory a model requires to store its parameters during training and inference can indicate its scale.

Small LLMs vs Larger LLMs

Larger Large Language Models (LLMs) typically outperform smaller ones due to their higher parameter counts, improved contextual awareness, and advanced learning capabilities. However, bigger is not always better. Some smaller LLMs are optimized for speed, efficiency, and cost-effectiveness, making them ideal for specific applications.

Understanding the relationship between model size and performance helps in selecting the right LLM for a given task. Here is a breakdown of how different model sizes perform:

  • Small LLMs (few million to few hundred million parameters): These models prioritize speed and efficiency, making them ideal for low-power devices and real-time applications. They consume minimal computational resources, reducing operational costs. For example, common applications include on-device AI assistants, embedded systems, and lightweight chatbots that require quick responses without heavy infrastructure.
  • Mid-Sized LLMs (1 billion or more parameters): Offering a balance between efficiency and contextual understanding, mid-sized models are suitable for enterprise AI chatbots, virtual assistants, and business automation. They can process complex queries with reasonable accuracy while maintaining scalability for growing demands, making them an excellent choice for customer support and workflow optimization.
  • Large LLMs (many billions or even trillions of parameters): These models excel in advanced language understanding, deep contextual reasoning, and creative text generation. However, they require substantial computational power, cloud-based infrastructure, and high memory capacity for training and inference. As a result, they are best suited for AI research, content creation, multilingual translation, code generation, and scientific problem-solving.

While large-scale LLMs provide the most advanced capabilities, smaller models remain crucial for tasks that require speed, efficiency, and cost control. 

Closing Thoughts

LLM tokens, parameters, and weights form the core structure of any LLM. These elements define how well an AI model understands, processes, and generates language. Finally, by understanding how LLMs function, developers, businesses, and everyday users can make better decisions with AI technology.

What are AI tokens?

AI tokens are text units used by language models to process and generate responses. A token can represent a word, part of a word, or a symbol, depending on the model’s tokenization method.

What are parameters in AI?

Parameters in AI are adjustable factors that shape how a model processes data. In LLMs, they define the weight given to different words and phrases to generate coherent, context-aware responses.

What’s the most powerful LLM?

The most powerful LLMs include GPT-4, Gemini, Grok, and Claude, each boasting hundreds of billions of parameters for advanced language understanding and text generation.

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