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Acronym · Established · Beginner

API (AI context)

Also known as: Application Programming Interface

An API is the interface an application uses to send prompts to a model and receive outputs, without hosting anything itself.

What API (AI context) is

Model APIs turned AI into a metered utility, typically billed per thousand input and output tokens.

How it works

Requests carry messages, tool definitions and settings; keys stay server-side and responses are usually streamed.

Why it matters

Token pricing, rate limits and context length shape product design more than teams expect.

Common uses

  • Adding AI to existing products
  • Batch processing
  • Agent backends

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