docs: add more info on maxSteps (#4133)

content/docs/03-ai-sdk-core/15-tools-and-tool-calling.mdx

@@ -1,6 +1,6 @@
 ---
 title: Tool Calling
-description: Learn about tool calling with AI SDK Core.
+description: Learn about tool calling and multi-step calls (using maxSteps) with AI SDK Core.
 ---
 
 # Tool Calling
@@ -49,16 +49,23 @@ const result = await generateText({
 Tool calling is not restricted to only text generation.
 You can also use it to render user interfaces (Generative UI).
 
-## Multi-Step Calls
+## Multi-Step Calls (using maxSteps)
 
-Large language models need to know the tool results before they can continue to generate text.
-This requires sending the tool results back to the model.
-You can enable this feature by setting the `maxSteps` setting to a number greater than 1.
-
-When `maxSteps` is set to a number greater than 1, the language model will be called
-in a loop when there are tool calls and for every tool call there is a tool result, until there
+With the `maxSteps` setting, you can enable multi-step calls in `generateText` and `streamText`. When `maxSteps` is set to a number greater than 1 and the model generates a tool call, the AI SDK will trigger a new generation passing in the tool result until there
 are no further tool calls or the maximum number of tool steps is reached.
 
+<Note>
+  To decide what value to set for `maxSteps`, consider the most complex task the
+  call might handle and the number of sequential steps required for completion,
+  rather than just the number of available tools.
+</Note>
+
+By default, when you use `generateText` or `streamText`, it triggers a single generation (`maxSteps: 1`). This works well for many use cases where you can rely on the model's training data to generate a response. However, when you provide tools, the model now has the choice to either generate a normal text response, or generate a tool call. If the model generates a tool call, it's generation is complete and that step is finished.
+
+You may want the model to generate text after the tool has been executed, either to summarize the tool results in the context of the users query. In many cases, you may also want the model to use multiple tools in a single response. This is where multi-step calls come in.
+
+You can think of multi-step calls in a similar way to a conversation with a human. When you ask a question, if the person does not have the requisite knowledge in their common knowledge (a model's training data), the person may need to look up information (use a tool) before they can provide you with an answer. In the same way, the model may need to call a tool to get the information it needs to answer your question where each generation (tool call or text generation) is a step.
+
 ### Example
 
 In the following example, there are two steps: