There is also a tradeoff between different vocabulary sizes (how many entries exist in the token -> embedding lookup table) that inform the current shape of tokenizers and LLMs. (Below is my semi-armchair stance, but you can read more in depth here[0][1].)
If you tokenized at the character level ('a' -> embedding) then your vocabulary size would be small, but you'd have more tokens required to represent most content. (And context scales non-linearly, iirc, like n^3) This would also be a bit more 'fuzzy' in terms of teaching the LLM to understand what a specific token should 'mean'. The letter 'a' appears in a _lot_ of different words, and it's more ambiguous for the LLM.
On the flip side: What if you had one entry in the tokenizer's vocabulary for each word that existed? Well, it'd be far more than the ~100k entries used by popular LLMs, and that has some computational tradeoffs like when you calculate the probability of each 'next' token via softmax, you'd have to run that for each token, as well as increasing the size of certain layers within the LLM (more memory + compute required for each token, basically).
Additionally, you run into a new problem: 'Rare Tokens'. Basically, if you have infinite tokens, you'll run into specific tokens that only appear a handful of times in the training data and the model is never able to fully imbue the tokens with enough meaning for them to _help_ the model during inference. (A specific example being somebody's username on the internet.)
Fun fact: These rare tokens, often called 'Glitch Tokens'[2], have been used for all sorts of shenanigans[3] as humans learn to break these models. (This is my interest in this as somebody who works in AI security)
As LLMs have improved, models have pushed towards the largest vocabulary they can get away with without hurting performance. This is about where my knowledge on the subject ends, but there have been many analyses done to try to compute the optimal vocabulary size. (See the links below)
One area that I have been spending a lot of time thinking about is what Tokenization looks like if we start trying to represent 'higher order' concepts without using human vocabulary for them. One example being: Tokenizing on LLVM bytecode (to represent code more 'densely' than UTF-8) or directly against the final layers of state in a small LLM (trying to use a small LLM to 'grok' the meaning and hoist it into a more dense, almost compressed latent space that the large LLM can understand).
It would be cool if Claude Code, when it's talking to the big, non-local model, was able to make an MCP call to a model running on your laptop to say 'hey, go through all of the code and give me the general vibe of each file, then append those tokens to the conversation'. It'd be a lot fewer tokens than just directly uploading all of the code, and it _feels_ like it would be better than uploading chunks of code based on regex like it does today...
This immediately makes the model's inner state (even more) opaque to outside analysis though. e.g., like why using gRPC as the protocol for your JavaScript front-end sucks: Humans can't debug it anymore without other tooling. JSON is verbose as hell, but it's simple and I can debug my REST API with just network inspector. I don't need access to the underlying Protobuf files to understand what each byte means in my gRPC messages. That's a nice property to have when reviewing my ChatGPT logs too :P
Exciting times!
0: https://www.rohan-paul.com/p/tutorial-balancing-vocabulary-s...
1: https://arxiv.org/html/2407.13623v1
2: https://en.wikipedia.org/wiki/Glitch_token
3: https://www.lesswrong.com/posts/aPeJE8bSo6rAFoLqg/solidgoldm...