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Learning path5 terms · ~15 min read

What is GenAI · for normies

Zero jargon. Six terms to sound smart at a dinner party.

Start · Tokens
ConceptsChapter 1 of 5

The thing AI charges for.

TL;DR

The fundamental unit that LLMs read and generate · 1 token ≈ 0.75 English words or 4 characters.

Tokens are the units of AI billing. Understand them or overpay.

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ConceptsChapter 2 of 5

The idea behind every modern AI.

TL;DR

The 2017 "Attention Is All You Need" architecture · parallelizable, scalable, and the foundation of every modern LLM.

The transformer is 8 years old and shows no signs of being replaced. Every proposed successor so far adds complexity without killing the scaling-law champion.

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ConceptsChapter 3 of 5

What happens every time you use AI.

TL;DR

The process of running a trained model to generate predictions · every API call is inference.

Inference optimization is where the next 10× cost reduction lives. Every frontier lab is racing to ship the best serving stack.

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ConceptsChapter 4 of 5

Why typing matters.

TL;DR

Crafting inputs to LLMs to get better outputs · few-shot examples, chain-of-thought triggers, role assignment, structured formats.

Prompt engineering as a standalone job is done. Prompt engineering as a skill is table stakes. Know what structured outputs are and move on.

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ConceptsChapter 5 of 5

Where AI is going next.

TL;DR

An AI that plans multi-step workflows, uses tools, and maintains state · not a single-turn chat.

Agents are where the frontier is in 2026. Chat is a solved problem. Agents are where the next decade of AI revenue compounds.

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What you learned

By the end you know what tokens, training, inference, and agents actually are · and you can hold your own in any AI conversation.

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The AI Bubble Explained

Seven terms that decode whether AI is overpriced, fairly priced, or criminally underpriced. Read in order.