To conquer the physical world the idea of AGI must merge with the idea of a self replicating machine.
The magnum opus of this notion is the Von Neumann probe.
With the entire galaxy and eventually universe to run these experiments the map will become as close to the territory as it can.
It seems that anyone who has ever played games like Factorio or Satisfactory can readily extrapolate similar real-world conclusions. Physical inefficiencies are merely an interface issue that erodes over time with intelligent modularizations and staging of form factors at various scales.
This might come as a surprise to some people, but the real world is infinitely more complex than a sim game.
Fully agree, self replication is key. But we can't automate GPU production yet.
Current GPU manufacturing is probably one of the most complex human endeavors we've ever created. You need incredibly precise photolithography, ultra-pure materials, clean rooms, specialized equipment that itself requires other specialized equipment to make... It's this massive tree of interdependent technologies and processes.
This supply chain can only exist if it is economically viable, so it needs large demand to pay for the cost of development. Plus you need the accumulated knowledge and skills of millions of educated workers - engineers, scientists, technicians, operators - who themselves require schools, universities, research institutions. And those people need functioning societies with healthcare, food production, infrastructure...
Getting an AI to replicate autonomously would be like asking it to bootstrap modern economy from scratch.