<-- This is the problem, but it falls well short of singularity.
If ML + robots can be produced for fewer resources than it takes to feed and house a human, then no reasonable amount of human labour will be sufficient to pay for robots+compute.
We may have a bust, with broad overcapacity and cheap, distributed ML compute. We may have the paperclip problem, where datacenters and fabs are taking over all reasonable resources and humans squeezed out. We may have everything in between.
If ML + robots can be produced for fewer resources than it takes to feed and house a human, then no reasonable amount of human labour will be sufficient to pay for robots+compute.
We may have a bust, with broad overcapacity and cheap, distributed ML compute. We may have the paperclip problem, where datacenters and fabs are taking over all reasonable resources and humans squeezed out. We may have everything in between.