A massive AI breakthrough is coming in the first half of 2026—and Morgan Stanley says most of the world isn’t ready for it.
In a sweeping new report, the investment bank warns that a transformative leap in artificial intelligence is imminent, driven by an unprecedented accumulation of compute at America’s top AI labs. Researchers specifically highlighted a recent interview with Elon Musk, citing his belief that applying 10x the compute to LLM training will effectively double a model’s “intelligence”—and say the scaling laws backing that claim are holding firm.
