Rise of the Token Economy The New Economics of AI

As artificial general intelligence (AGI) moves from conceptual to practical reality in 2025, the economic frameworks underpinning AI development are undergoing a radical shift. Liran Zvibel's insights illuminate the critical transition into what he terms the fourth industrial revolution, where AI is not merely a technological breakthrough but a systemic economic transformation. The traditional metrics of AI success, focused on model scale, are being supplanted by the imperative for economic efficiency—redefining leadership in this trillion-dollar space.

Central to this new landscape is the rise of token-based economies, which provide the infrastructure to dramatically reduce operational costs, especially in GPU utilization, by up to 95%. This evolution in infrastructure addresses one of AI's most stubborn barriers: latency, which currently impedes real-world AI adoption. By re-engineering how computing resources are allocated and priced, token economies incentivize smarter resource management and unlock sustainable growth strategies.

• 2025 marks the practical dawn of AGI, transforming AI from a race of innovation to an economic contest.
• The economics of tokens will be pivotal in defining market leadership in AI.
• Advancements in infrastructure efficiency can drastically lower computational costs and latency.
• Future AI leadership is contingent on mastering infrastructure intelligence, not just expanding model sizes.