Cells certainly have a kind of independent existence (consciousness is a different matter...). But our body needs its cells. It's not simulating cells in another substrate.
The 'cells' in the case of the hypothetical technological singularity will be computer hardware, not organic cells or human brains. There is the tacit assumption that silicon-based AI tech is somehow superior to our own carbon-based 'tech' and will displace it.
Human brains forming into a kind of super-organism would be a different phenomenon. It wouldn't even need AI, or much more advanced technology. It could indeed be argued that this is the case already with the internet and even printing press before it.