Reality can’t be saturated. The set of things you can accomplish with more intelligence is unbounded. So while cheap models will continue to proliferate, there will always be a massive market at the frontier, and that won’t ever change.
Guess what could help solve it? :)
Seriously though, this “problem” will never be fully solved, we’ll just get better and better at connecting AI to the broader world, and to me that’s already the story of the last few years. Models get better, they’re able to build and drive tools to interact with both the digital and physical world better, which helps build the next generation of models, and so on.