>Will the machine dream?

You seem to be mixing up intelligence and consciousness. Not only does intelligence exist outside of humans, and even mammals, but it exists outside of brains and even neurons. For example, slime molds have fascinating problem solving abilities: https://www.nature.com/articles/nature.2012.11811

It is clear that whatever we are...creating/growing with LLMs, it is very unlike human intelligence, but it is nonetheless some type of intelligence.

agi just means a machine, system or whatever that can do anything as least as well as a human. The details dont matter as much as its ability to match humans in everything they are paid money to do.

And obviously if such a system existed, the benefits (and risks) would be enormous, though the risks are smaller if you control it vs someone else, which is why every company is racing towards it.