Core Insights - The Milken Institute Global Conference focuses on addressing urgent global challenges, with this year's theme being "Driving a Prosperous World," emphasizing artificial intelligence and renewable resources [1][2]. Group 1: AI Industrial Revolution - The concept of the "AI Industrial Revolution" is introduced, indicating a complete restructuring of production systems and redefining human value [3]. - AI is seen as a digital workforce and a mass-manufacturable industrial product, reshaping enterprise operations and introducing a "dual factory" model [4][10]. Group 2: Dual Factory Model - Traditional factories produce tangible goods, while AI factories rely on GPU clusters, data centers, and computational resources to produce "intelligent units" or Tokens [5][7][9]. - Tokens serve as the digital fuel for future products, enabling various applications such as autonomous driving and customized financial analysis [7][16]. Group 3: Investment in AI Factories - Building an AI factory requires significant investment, with Nvidia's AI factory needing 1 gigawatt of power and costing approximately $60 billion [11][12]. - The investment is primarily in hardware, including GPUs, data centers, and energy infrastructure, indicating a need for substantial resources and planning [13][14]. Group 4: Global Economic Impact - The establishment of AI factories is expected to reshape the global economic landscape, with predictions of over $2 trillion in investments over the next decade [14][19]. - Countries that develop AI factories will gain control over smart pricing and standard-setting, influencing global industry upgrades [19][20]. Group 5: Market Dynamics and Competition - The potential loss of the Chinese market could lead to a significant loss of technological leadership for American companies, allowing Chinese firms to establish their own standards and frameworks [21][22]. - The emergence of a bifurcated global AI ecosystem could occur, with distinct "American" and "Chinese" technology spheres [22][23]. Group 6: Future of Global Supply Chains - Adoption of Chinese AI standards could lead to a reconfiguration of global supply chains, with companies needing to comply with these standards to access the Chinese market [26][29]. - This shift may create dependencies on Chinese technology, impacting manufacturing and data management practices worldwide [30][31]. Group 7: Economic Power Shift - The rise of a "Token economy" could challenge the dominance of the US dollar in international trade, as Tokens may influence transaction pricing [31][32]. - The potential for a new economic order based on AI capabilities and production capacity is highlighted, with countries competing for dominance in AI production [33][34].