This concept explains how AI models handle text by breaking it into tokens, which are small pieces like words or parts of words. These tokens fit into a limited context window, which is the number of tokens the model can see and process at one time. The process starts with receiving input text, splitting it into tokens, loading those tokens into the context window, processing them to understand the input, and then generating output. The context window size limits how many tokens the model can consider at once, so if the input is longer than this size, some tokens may be ignored. This helps the AI manage memory and focus on recent or relevant parts of the text.