The tokenizer tax
Talking to an AI model in Icelandic costs more than saying the same thing in English. The price list is the same. The difference is in how the models read.
Models don’t read words. A tokenizer first cuts the text into pieces called tokens, and you pay per token. Tokenizers learn their pieces from the text they see most, which is mostly English. Common English words become one token each. Words in languages with less text online get chopped into fragments.
English 13 tokens
Icelandic 28 tokens
Rest of World wrote about this recently, based on a study by CLEAR that calls it the tokenizer tax. Across 200 languages, the worst-served language needed up to 17 times more tokens than the best-served one for the same content, depending on the model. Among the 20 biggest languages on the web, the gap was mostly between 1.5 and 3.1 times.
Icelandic isn’t in the study, so I measured it. I ran the English and Icelandic versions of my last two notes through the same tokenizer. The texts say the same thing and are almost the same length in characters, but the Icelandic needs about 1.5 times the tokens: 434 against 297 for one note, 253 against 163 for the other.
So Icelandic gets off lightly next to Amharic, thanks to the Latin alphabet. It still counts in three ways:
- Cost. About 50% more for every prompt and every answer.
- Memory. The same document or conversation history fills the model’s context window faster.
- Speed. More tokens in the answer means a longer wait.
This is one tokenizer. Others split text differently, and token prices are falling fast. What I take from it for my own work: chatting in Icelandic is fine, but the instructions an agent reads on every single run are cheaper in English.