Merging doesn't save us either, alas. Remember that the AI will constantly be looking for ways to modify itself to increase its own efficiency – that probably includes expunging us from inside it to replace us with something simpler and more focused on the AI's goals.

On the bright (?) side, there won't be an eternal despotic dystopia, technically. The universe and everything in it will be destroyed, rearranged into some repeating pattern of matter that optimally satisfies the AI's utility function.