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AI / LLM Basics Interview Questions

What is Byte-Pair Encoding (BPE)?

Byte-Pair Encoding is a popular tokenization algorithm that builds a vocabulary by repeatedly merging the most frequently occurring pair of characters or character sequences in a training corpus.

  • Starts with individual characters as the smallest units
  • Iteratively merges the most common adjacent pairs into new, longer tokens
  • Stops once a target vocabulary size is reached, typically tens of thousands of tokens

This approach strikes a practical balance: common words end up as single tokens for efficiency, while rare or unseen words can still be represented by breaking them into smaller, previously-learned pieces instead of failing entirely.

What does BPE build its vocabulary by doing?
What happens to rare or unseen words under BPE?

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