Module 01 · Weeks 1–2 · LLM Mechanics

Foundations of Modern AI Systems

A product-first introduction to LLM mechanics, Transformer architecture, tokenization, context windows, model tradeoffs, hallucinations, cost, and benchmarks.

ThemeLLM Mechanics
DurationWeeks 1–2
StatusActive

PM-specific focus

Every token costs money. Understanding tokenization, context windows, and model tiers lets you set product constraints, write better specs, and own AI feature unit economics.

Deliverable

Model selection memo: use case, quality requirements, cost estimate at scale, chosen model + rationale, risks.

Outcomes

Learning outcomes

Explain context windows to stakeholders Estimate monthly inference cost Choose the right model tier Credible LLM conversations with engineers
Topics

Core topic map

Architecture Tokens & context Sampling Training approaches Model families Hallucinations Multimodal Benchmarks Cost & tradeoffs

Tools & frameworks

OpenAI Tokenizer LMSYS Chatbot Arena Anthropic pricing calculator Model cards

Resources

Illustrated Transformer Karpathy — Intro to LLMs Anthropic docs Lilian Weng State of AI Report
Chapters

Chapter path

← Back to AI Learning Start Chapter 01 Module 02 →