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China introduces Token Factories for AI growth
China has launched token factories to accelerate the development of the artificial intelligence economy, aiming to build an economic system suited to the AI era. Tokens are widely used in everyday applications of AI models, where their usage is measured using the term "Tsyuan," a standardized unit similar to the kilowatt-hour for electricity. The first token factory in Beijing has begun operations, producing 1.4 trillion tokens daily, with plans to establish global factories and develop evaluation standards to ensure high quality and facilitate the economic trading of tokens. Data indicates that token consumption in China surpasses 500 trillion requests per day, with a significant concentration in Beijing. The government is working on developing an institutional framework that connects models, data, and energy to achieve comprehensive industrial development. New policies aim to enhance the application of tokens across sectors such as industry, research, and government, with expectations of substantial growth in their consumption in the coming years. It is projected that token consumption in China will increase by 370 times between 2025 and 2030.
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