It seems like a sufficiently intelligent intelligence will eventually "escape" all the way up to the "real world". From this example, if the Einsteinians had invented an AI without having the hardware spontaneously melt, it would have escaped into the Einsteinian world. It then would have moved up into the "undergrad world", since it would be smarter than the Einsteinians and they were capable of "moving up".

I can't quite put my finger on it but something seems wrong about this...something mind bending is going on here.