It's a good illustration of the limits if a singularity happens. For example in the near future if it starts, AI companies will have rapidly more intelligent models (like now but faster) until tsmc and a couple other facilities are basically exclusively making AI chips.

New phones, GPUS, and game consoles would become unattainable.

And then things don't go crazy yet because every chip is going to AI research or AIs making money for their owners, and progress is rate limited by the chip production rate.

Later stages this will be solved somehow and there will be new bottlenecks.