{"id":2473,"date":"2026-03-05T09:00:32","date_gmt":"2026-03-05T08:00:32","guid":{"rendered":"https:\/\/nuwai.ch\/faq\/terms-abbreviations\/"},"modified":"2026-03-05T11:08:28","modified_gmt":"2026-03-05T10:08:28","slug":"terms-abbreviations","status":"publish","type":"page","link":"https:\/\/nuwai.ch\/en\/faq\/terms-abbreviations\/","title":{"rendered":"Terms &amp; Abbreviations"},"content":{"rendered":"[vc_section type=&#8221;full_width_background&#8221; text_color=&#8221;dark&#8221; background_color=&#8221;#474E7D69&#8243; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; content_layout=&#8221;default&#8221; advanced_gradient_display_type=&#8221;linear&#8221; el_class=&#8221;startproject&#8221;][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; 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row_position_phone=&#8221;inherit&#8221; overflow=&#8221;visible&#8221; pointer_events=&#8221;all&#8221;][vc_column_inner column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; flex_gap_desktop=&#8221;10px&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; overflow=&#8221;visible&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;5\/6&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text css=&#8221;&#8221; text_direction=&#8221;default&#8221;]\n<h3>7 \u2013 Terms &amp; Abbreviations<\/h3>\n[\/vc_column_text][\/vc_column_inner][vc_column_inner column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;right&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; overflow=&#8221;visible&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/6&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221; column_padding_type=&#8221;default&#8221; content_layout=&#8221;default&#8221; gradient_type=&#8221;default&#8221;][nectar_cta btn_style=&#8221;underline&#8221; underline_visibility=&#8221;default&#8221; heading_tag=&#8221;span&#8221; link_type=&#8221;regular&#8221; button_color=&#8221;default&#8221; button_border_thickness=&#8221;0px&#8221; alignment=&#8221;right&#8221; alignment_tablet=&#8221;default&#8221; alignment_phone=&#8221;default&#8221; display=&#8221;block&#8221; display_tablet=&#8221;inherit&#8221; display_phone=&#8221;inherit&#8221; icon_family=&#8221;none&#8221; link_text=&#8221;Overview&#8221; url=&#8221;https:\/\/nuwai.ch\/en\/faq\/&#8221;][\/vc_column_inner][\/vc_row_inner][toggles style=&#8221;animated_circle&#8221; animated_circle_position=&#8221;right&#8221; animated_circle_size=&#8221;40&#8243; animated_circle_bg_color=&#8221;#FFFFFF&#8221; animated_circle_gap=&#8221;15&#8243; border_radius=&#8221;10px&#8221;][toggle color=&#8221;Default&#8221; heading_tag=&#8221;default&#8221; heading_tag_functionality=&#8221;default&#8221; title=&#8221;What does NLP (Natural Language Processing) mean?&#8221;][vc_column_text]NLP \u2013 Natural Language Processing \u2013 refers to the field of AI that deals with understanding and processing human language. This includes everything from speech recognition to text classification and translation.<\/p>\n<p>Every time you talk to a voice assistant, receive an automatic summary, or run a sentiment analysis of your customer reviews, NLP is at work. LLMs are currently the most powerful form of NLP.[\/vc_column_text][\/toggle][toggle color=&#8221;Default&#8221; heading_tag=&#8221;default&#8221; heading_tag_functionality=&#8221;default&#8221; title=&#8221;What does SLM (Small Language Model) mean?&#8221;][vc_column_text]A Small Language Model is a more compact language model with fewer parameters \u2013 typically under 10 billion. They are faster, more cost-effective to operate, and can often run on standard hardware.<\/p>\n<p>Examples: Phi-3 (Microsoft), Gemma (Google), Llama 3 8B (Meta). For many business applications, SLMs are perfectly sufficient \u2013 especially when the task is clearly defined (e.g., classification, extraction, simple summaries). Not every problem requires the biggest hammer.[\/vc_column_text][\/toggle][toggle color=&#8221;Default&#8221; heading_tag=&#8221;default&#8221; heading_tag_functionality=&#8221;default&#8221; title=&#8221;What does AGI (Artificial General Intelligence) mean?&#8221;][vc_column_text]AGI refers to a hypothetical AI that masters any intellectual task at or above human level \u2013 not just writing texts, but also abstract thinking, learning, planning, and adapting to completely new situations.<\/p>\n<p>Current AI systems are far from this. They are &#8220;narrow&#8221; \u2013 excellent at what they were trained for, but incapable of demonstrating true understanding. Whether and when AGI will be achieved is hotly debated in the research community. Estimates range from &#8220;in 5 years&#8221; to &#8220;never.&#8221;[\/vc_column_text][\/toggle][toggle color=&#8221;Default&#8221; heading_tag=&#8221;default&#8221; heading_tag_functionality=&#8221;default&#8221; title=&#8221;What does GPU \/ TPU mean?&#8221;][vc_column_text css=&#8221;&#8221; text_direction=&#8221;default&#8221;]<strong>GPU (Graphics Processing Unit):<\/strong> Originally developed for graphics and gaming, GPUs are now the most important hardware for AI training and operation. Their strength: they can execute thousands of calculations simultaneously. The dominant manufacturers are NVIDIA (market leader) and AMD.<\/p>\n<p><strong>TPU (Tensor Processing Unit):<\/strong> Specialized chips developed by Google, optimized exclusively for AI computations. They are deployed in Google Cloud.<\/p>\n<p>The shortage of powerful GPUs is one of the biggest bottlenecks in the AI industry \u2013 and a reason why cloud AI services often make more sense for SMEs than their own hardware.[\/vc_column_text][\/toggle][toggle color=&#8221;Default&#8221; heading_tag=&#8221;default&#8221; heading_tag_functionality=&#8221;default&#8221; title=&#8221;What does RLHF mean?&#8221;][vc_column_text]RLHF stands for &#8220;Reinforcement Learning from Human Feedback&#8221; \u2013 a training method in which human evaluators assess a model&#8217;s outputs and the model is refined based on this feedback.<\/p>\n<p>RLHF is the reason why ChatGPT feels so &#8220;natural.&#8221; Without RLHF, language models would produce correct but often unusable, confusing, or inappropriate responses. It is the step that transforms a raw model into a useful assistant.[\/vc_column_text][\/toggle][toggle color=&#8221;Default&#8221; heading_tag=&#8221;default&#8221; heading_tag_functionality=&#8221;default&#8221; title=&#8221;What does Inference mean?&#8221;][vc_column_text]Inference is the process by which an already trained model processes an input and generates an output. When you ask ChatGPT a question and receive an answer, that is inference.<\/p>\n<p>This is an important distinction: training happens once (and costs millions). Inference happens with every single use. The ongoing costs for AI applications are primarily determined by inference \u2013 which is why more efficient models are directly cheaper to operate.[\/vc_column_text][\/toggle][toggle color=&#8221;Default&#8221; heading_tag=&#8221;default&#8221; heading_tag_functionality=&#8221;default&#8221; title=&#8221;What is a Benchmark?&#8221;][vc_column_text]A benchmark is a standardized test used to compare the performance of different AI models. Similar to crash tests for cars, there are different benchmarks for different capabilities.<\/p>\n<p>Well-known benchmarks include: MMLU (general knowledge), HumanEval (programming), GSM8K (mathematics), Arena Elo (human evaluation in direct comparison). Benchmarks are useful as guidance, but should be taken with caution \u2013 a model that performs well in tests is not automatically the best for your specific task.[\/vc_column_text][\/toggle][toggle color=&#8221;Default&#8221; heading_tag=&#8221;default&#8221; heading_tag_functionality=&#8221;default&#8221; title=&#8221;What is a Knowledge Cutoff?&#8221;][vc_column_text]The knowledge cutoff is the date up to which a model absorbed information during its training. Everything that happened after this date is not &#8220;known&#8221; to the model \u2013 unless it is connected to a web search or current data sources.<\/p>\n<p>Example: A model with a cutoff of March 2024 does not know about events from April 2024 onward. This is why it is important for businesses to connect AI systems with current data sources (via RAG or web search) when up-to-date information is relevant.[\/vc_column_text][\/toggle][toggle color=&#8221;Default&#8221; heading_tag=&#8221;default&#8221; heading_tag_functionality=&#8221;default&#8221; title=&#8221;What is Tokenization?&#8221;][vc_column_text]Tokenization is the process by which text is broken down into tokens before being processed by the model. Different models use different tokenizers \u2013 which is why the same text can result in a different number of tokens depending on the model.<\/p>\n<p>Interesting detail: Most tokenizers are optimized for English. German texts therefore often consume more tokens than English texts of the same length. 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text_direction=&#8221;default&#8221;]\n<h3>Getting to know us is <em>worth<\/em> it.<\/h3>\n[\/nectar_responsive_text][vc_column_text css=&#8221;&#8221; text_direction=&#8221;default&#8221;]\n<p>60 minutes is enough to understand whether and how AI makes sense for your business.<\/p>\n[\/vc_column_text][nectar_cta btn_style=&#8221;arrow-circle-animation&#8221; heading_tag=&#8221;span&#8221; link_type=&#8221;regular&#8221; button_color=&#8221;default&#8221; text_color=&#8221;#8224E3&#8243; text_color_hover=&#8221;#A78BFA&#8221; button_border_thickness=&#8221;0px&#8221; alignment=&#8221;left&#8221; alignment_tablet=&#8221;default&#8221; alignment_phone=&#8221;default&#8221; display=&#8221;block&#8221; display_tablet=&#8221;inherit&#8221; display_phone=&#8221;inherit&#8221; link_text=&#8221;Request a conversation&#8221; url=&#8221;https:\/\/nuwai.ch\/en\/#contact&#8221;][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][\/vc_section][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; 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