I agree, though a correction: PCs very much did exist by the time of AS/400, and particularly when OS/400 (IBM i) introduced LPARs, though analogues have been around in plenty of IBM's prior systems.
A predecessor of the AS/400, the System/36 PC was available in very similar chassis to the IBM AT. It used an IBM 5150 ( aka PC ) as the console with a special interface card.
Yeah, you're right. I made a perhaps bad/loose equivocation for System/38, which I think predates IBM PCs, to AS/400, which showed up in the late 80's.