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Understanding Context Windows in AI Models

4 min read
By Olivia Bennett

Introduction

Context windows are one of the most important — yet often misunderstood — features in AI language models. For developers and product managers, understanding them is critical to designing efficient prompts, anticipating limitations, and controlling costs.

What Is a Context Window?

Plain Language Explanation

A context window is the maximum amount of text an AI model can "see" at one time. It's like the model's short-term memory. All tokens from your prompt, system instructions, and conversation history go into this window.

Why It Matters for Developers & PMs

If your conversation or input exceeds the window size, older tokens are dropped or truncated. This can result in lost information, inconsistent answers, or higher costs when you must resend context.

How Models "See" Text

Visualizing Token Sequences

Think of tokens as puzzle pieces. A model can only fit so many pieces on the table at once — that's the context window. Every new piece pushes the oldest piece off if the table is full.

Sliding Window Effect

When you keep adding text, the model's "view" shifts forward, discarding earlier tokens. This sliding effect is why long chats may forget early details unless you reintroduce them.

Real Token Examples

Short Prompt Walkthrough

Imagine a model with a 10-token window. If you send "Hello world" (2 tokens) and "How are you today?" (5 tokens), you have 3 tokens of space left before overflow.

Long Prompt and Truncation

If you send 15 tokens, the model will only process the last 10 — the earlier 5 are dropped. This is invisible unless you know the context limit.

Context Windows by Model

Below is a quick-reference list of notable models and their official context window sizes:

Practical Cost Impact

Token Pricing and Window Size

Many API providers price requests based on tokens processed. A larger window lets you fit more history, but it can also mean more tokens billed per request.

For example:

  • If your model's price is $0.000001 per token, sending the full 200,000 tokens costs $0.20 each time.
  • Large context models are powerful for long documents but can multiply costs.

Memory vs. Compute Tradeoffs

Bigger context sizes mean the model uses more compute per request, which can increase latency. You may need to balance recall vs. speed.

Strategies to Optimize Context Use

Summarization

Periodically summarize earlier conversation into fewer tokens.

Chunking

Split large documents into sections and send them incrementally as needed.

Selective Retrieval

Use embeddings or vector search to only insert relevant past details into the prompt.

Key Takeaways

  • The context window is the model's short-term memory.
  • Once full, older tokens are dropped.
  • Larger windows increase power and cost.
  • Smart prompt design and memory strategies control token use.

Resources & Further Reading

  • OpenAI API Documentation
  • Anthropic Model Specs
  • Google Gemini Developer Guide
  • Tokenization Concepts for NLP
Understanding Context Windows in AI Models | JuheAPI