Beijing:China is fast-tracking the establishment of "token factories" to enhance its artificial intelligence (AI) economy. These factories are being developed to build an economic system tailored for the AI era.
According to Xinhua News Agency, the first token factory in the Chinese capital has started operations in the Beijing Economic-Technological Development Area. This facility has a daily capacity of up to 1.4 trillion tokens in its initial phase.
Tokens are consumed whenever a user prompts an AI model to generate outputs like code, images, or videos. In March, China standardized the term "ciyuan" as the official Chinese word for "token," creating a standard unit for measuring, settling, and tracking AI service usage, akin to how kilowatt-hours measure electricity.
Beijing has introduced an action plan to expedite the token economy's growth between 2026 and 2028. This plan emphasizes the construction of advanced token factories and the establishment of standards for productivity and energy efficiency.
Tokens act as data processing units in AI models, allowing customers to pay for tokens rather than managing the models themselves. By June, China's average daily token calls surpassed 500 trillion, as reported by the National Data Administration.
These initiatives are part of the "AI Plus" strategy, which aims to promote AI adoption while advancing the nation's infrastructure and computing capabilities.
Source Emirates News Agency