The best way to think about production is that everything produced is a combination of four things: labor, capital (past production), energy, and matter (land and raw materials). If you have labor that can be used to build itself (AI) then you can expand labour and capital to a very large number. You can also build new sources of energy very cheaply so the only limiting resource is matter. If you have the energy, capital and labor you can recycle most raw materials very cheaply. This leaves land as the only factor in production that does not scale.
What would all this mean in practice. Physical objects and services would become very cheap to make (effectively free) and all wealth would be tied to the ownership of land. Given the state owns most land, it should be very cheap for the state to provide all the material objects and services that any citizen needs. Unless the state actively wants to stave to death its citizens then there is not need for anyone to go hungry - if the state does want to stave to death people it does not need AI.