1. What is a token in the context of language models?
A token is a basic unit of text or code that a language model processes. It can be a word, part of a word, punctuation mark, or other symbol, depending on the model’s tokenization method.
2. How to estimate the cost of running a SaaS-based & Open source LLM model?
To estimate the cost of running a SaaS-based or open source LLM model:
- Calculate compute costs (GPU/CPU usage)
- Consider storage costs for data and model weights
- Factor in bandwidth costs for API calls
- Add maintenance and operational expenses
- For SaaS, include licensing fees
- For open source, account for integration and customization costs
Compare cloud provider pricing or on-premise hardware costs based on your expected usage and performance requirements.
3. Explain the Temperature parameter and how to set it.
The temperature parameter controls the randomness of language model outputs:
- Low temperature (0.1–0.5): More focused, deterministic responses
