Your reasoning still assumes that "AGI" can emerge from quadratic time brute force on some text and images scraped off the internet. Personally, I'm skeptical of that premise.
That's like saying sentience cannot emerge from a few amino acids tumbled together, yet here we are. There is a lot of higher dimensional information encoded in those "text and images scraped off the internet". I still don't think that's enough for AGI (or ASI) but we know a lot of very complex things that are made of simple parts.
OTOH, text and images have only been around for a little while. The real question is whether text and images can contain enough information for AGI, or a physical world to interact with is needed.
