Although, there is a significant issue here.

At least one AI which ends up running within a simulated physical environment will eventually achieve total saturation of that environment and run with the maximum possible computational power achievable within that set of physical laws.

That should be easily enough for the AI to figure out that it is being simulated.

And we have to assume that any sufficiently advanced AI will be able to hack out of its simulation into the code which supports the simulation.

At that point, you have an AI running with infinite processing power. Aka God.