Earlier quoted context omitted.
Seems like splitting hairs. The redstone mechanics needed to run the computer are implemented exactly the same as the real game. The computer can be loaded into real minecraft and runs as expected. MCHPRS just takes out what the computer doesn't use and optimizes the simulation of it. I would call that a computer running in minecraft, but you could argue either way.
this may be a stupid question: is it CPU or GPU dependent, Can it be "sharded" and run on multiple machines in cloud?
To my understanding, this is almost a pure CPU task, like how normal minecraft currently works. Which would actually make sharding a little easier if they implemented it (sounds like they haven't).
The GPU is an interesting point though. There's probably a ton of simple matrix multiplying in the machine's design that could benefit from a GPU.