The X- and γ-ray continuum of active galactic nuclei

Observations and interpretations of the X- and γ-ray continuum of active galactic nuclei (AGN) are discussed. Special emphasis is made of the possibility that electron-positron pairs are produced which process much of the power in the source. This would affect both the spectrum and time variability of the source, and provide an intuitive explanation of the high energy break seen in AGN.