Personally I don't think it's out of the question, but at the same time I don't think we're anywhere near it.

Potentially exaggerated

Exaggerated imo.

AGI is a cover for building out a panopticon state to justify the data collection required to run such a mythological AGI.

I think it will happen someday but we are still a few years away, it looks like a smokescreen from OpenAI.