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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