Glossary

Agent
A model given tools and a goal, left to loop — deciding what to do next and doing it — until the job is done or it gives up.
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Agent loop
Plan, call a tool, read the result, decide again. The cycle an agent repeats until it finishes or is stopped.
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AI21
An Israeli lab behind the Jamba models, built for very long inputs.
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Alibaba
Publishes the Qwen models, a large open-weight family covering text, images and code.
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Amazon
Builds the Nova models and resells most other vendors’ through Bedrock, its managed model service.
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Anthropic
The company behind the Claude models. Publishes the most complete pricing of any vendor read here, including what writing to the cache.
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ByteDance
TikTok’s parent company, which publishes the Doubao and Seed models.
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Cache write
The charge for putting a prefix into the prompt cache. Usually more than the input rate, not less.
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Chain of thought
Asking a model to work through its reasoning before answering, which measurably improves accuracy on multi-step problems.
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ChatGPT
OpenAI’s chat assistant, on the web, desktop and phone. The usual first encounter with a large language model.
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Claude
Anthropic’s assistant, on the web, desktop and phone.
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Claude Code
Anthropic’s coding agent, run in a terminal or inside an editor. It reads and edits a whole repository rather than one file.
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Codex
OpenAI’s coding agent, run from the terminal or delegated to in the cloud.
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Cohere
A Canadian company selling models aimed at business use, particularly search and retrieval over a company’s own documents.
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Computer use
A model driving a screen directly — looking at pixels, moving a cursor, typing — instead of calling an API.
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Context rot
The tendency of a model to attend less to material buried in the middle of a long context than to its start or end.
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Context window
The total tokens a model can consider at once: your prompt, the conversation so far, and the answer it is writing.
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Copilot
Microsoft’s assistant brand. GitHub Copilot writes code in an editor; Microsoft 365 Copilot sits inside Word, Excel, Outlook and Teams.
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DeepSeek
A Chinese lab whose models are notably cheap per token and published as open weights, which is why they turn up in so many cost comparisons.
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Embedding
A list of numbers representing a piece of text, arranged so that similar meanings land near each other.
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Evals
A repeatable test set you score a model against, so a change can be shown to help rather than assumed to.
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Few-shot prompting
Showing the model two or three worked examples of what you want, instead of describing it.
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Fine-tuning
Continuing training on a smaller, curated set of examples to specialise a model or teach it a format.
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Frontier model
The largest and most capable model a vendor currently offers, priced accordingly.
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Gemini
Google’s assistant, on the web and phone and woven through Workspace — Docs, Gmail and Sheets.
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Google
The company behind the Gemini models, sold through Google AI Studio and Vertex AI.
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Grok
xAI’s assistant, reached on its own site and inside X.
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Hallucination
A fluent, confident, entirely invented answer. The failure mode that matters, because it looks exactly like a correct one.
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Inference
Running a trained model to get an answer. Everything you pay for by the token is inference, not training.
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Knowledge cutoff
The date after which a model saw no training data. It knows nothing later unless you tell it or it can search.
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Large language model
A model trained to predict the next token over enormous amounts of text, which turns out to be enough to do a great deal.
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Le Chat
Mistral’s assistant, on the web and phone.
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Llama
Meta’s family of open-weight models. Free to download and run on your own machine; several hosting companies also sell access by the token.
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Meta
The company behind the Llama models, which it publishes as open weights you can download and run yourself.
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Microsoft
Sells other companies’ models through Azure alongside its own smaller Phi models, and puts them behind the Copilot name across Windows and.
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MiniMax
A Chinese lab whose models cover text, speech and video.
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Mistral AI
A French lab publishing both open-weight and paid models, and the usual answer when a project has to stay inside Europe.
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Model Context Protocol
An open standard for connecting models to tools and data, so one integration works across many applications.
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Moonshot AI
A Chinese lab behind the Kimi models, known for very large context windows.
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Multimodal
A model that accepts more than text — images, audio or video — in the same prompt.
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Open weights
A model whose trained parameters are published, so anyone can run it on their own hardware.
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OpenAI
The company behind the GPT models and ChatGPT. Sells access through its own API and through Microsoft Azure.
Full entry
Per million tokens
How model prices are quoted: dollars per million tokens, charged separately for what you send and what comes back.
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Pretraining
The first and most expensive stage: learning to predict the next token across a very large body of text.
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Prompt
Everything you send the model on one call: instructions, context, history and question together.
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Prompt caching
Paying a reduced rate for a prefix the vendor has already processed, instead of full price for sending it again.
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Rate limit
A cap on how much you may send in a window, usually counted in requests and tokens per minute.
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Reasoning model
A model trained to produce a long internal working-out before its answer. More accurate on hard problems, slower and dearer.
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Reinforcement learning from human feedback
Training a model against human judgements of which answer is better, rather than against a single correct answer.
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Retrieval-augmented generation
Looking up relevant documents and putting them in the prompt, so the model reads facts rather than recalling them.
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System prompt
Standing instructions sent ahead of every conversation, setting the role, rules and format.
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Temperature
How much randomness to allow when picking each token. Low is repeatable and dull; high is varied and unreliable.
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Token
The unit a model reads and writes. Roughly three quarters of an English word, so 1,000 tokens is about 750 words.
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Tokenizer
The fixed table that chops text into tokens. Decided before training and never changed afterwards.
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Tool use
Letting a model call functions you define — search, read a file, send a request — and read back what they return.
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Vibe coding
Building software by describing what you want and iterating on what the model produces, rather than writing it line by line.
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xAI
The company behind the Grok models.
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Zhipu AI
A Chinese lab behind the GLM models.
Full entry

Microsoft

Sells other companies’ models through Azure alongside its own smaller Phi models, and puts them behind the Copilot name across Windows and.

Sells other companies’ models through Azure alongside its own smaller Phi models, and puts them behind the Copilot name across Windows and Office.

You most often meet it as Copilot.

Reached through a cloud platform that also resells other companies’ models and an API you call from your own code.

What its models cost, and which of them suits a given job, is on Model usage. Prices there are read from this vendor’s own published page and carry the date they were read.

Official site: https://azure.microsoft.com/en-us/products/ai-services/openai-service

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