I am not sure what are you going to extract from the following formula because it is strange. The formula says multiply the elevation of the DEM by 1000 OR if the DEM values are more than or equal to 2m it will output 1 where the condition is met, and 0 if the condition is not met (thanks to Luke for his clarification), which does not make sense.
But the expression is incorrect, you should write the formula like this:
"dem" * 1000 | "dem" >= 2
| : means OR. Check the Raster Calculator Help for correct operators in the Raster Calculator tool dialog box.
If you want to extract DEM values that are more than or equal to 2m you can use SetNull() to set the DEM values that are less than 2 to NULL and keep the values that are more than or equal 2m as follows:
SetNull("DEM" < 2,"DEM")