Morgan Stanley Says a Massive AI Leap Is Coming

0:00Open claw is changing the entire finance sector and Morgan Stanley just wrote a report saying that this massive AI breakthrough is coming right now. And if you are in the finance space, you're probably going to want to pay attention. They're saying most of the world isn't ready for this huge disruption in finance. You know, when Morgan Stanley says something like this, you know, you should be paying attention. This isn't just some random tech blogger making predictions. This is the biggest investment bank on the planet telling their clients to brace for impact. And the timing of this is really interesting because we're already in the first half of 2026 and this isn't some distant future prediction. They're saying it's happening right now. So, I'm going to break down what they're actually saying and why I think it matters so much for builders like you and I. The core of

0:46their argument is about compute scaling. They're saying that the amount of computing power being thrown at AI training is increasing at a rate that most people don't fully understand. And the key insight they reference is from Elon who said that applying 10x the compute to train a large language model effectively doubles its intelligence. Morgan Stanley is saying the scaling laws behind that claim are holding firm. I want to put this into context. We're not talking about some theoretical discussion at some academic conference. This is a bank that manages trillions of dollars in assets telling their investors to prepare. That's a different thing. So, what does this actually mean in plain English for you? It means that the AI models we're using right now claw, GPT, Gemini, pretty much all of

1:32them, they're going to get significantly smarter. Not just a little bit better. Insane. Because the labs are throwing more and more compute at training runs. And the math says that more compute equals more capable models. That relationship has not broken down yet. And if you're using Opus 4.6 or one of these frontier models and you think it's good now, it's going to get infinitely better here in the next few months. And we're already seeing this play out. You know, they point to Open AI's GPT 5.4 thinking model which scored 83% on something called GDP valve benchmark. That's the test designed to measure AI AI on economically viable tasks. And 83% puts it at above human expert level. So, if you think about that for a second, we already have AI performing at expert

2:19level in the real world on economic tasks. Morgan Stanley is saying the curve only gets steeper from there. Now, here's where it gets real for us. They're predicting that this breakthrough is going to cause two major things to happen. The first thing is a power crisis. They're projecting a net US power shortfall of 9 to 18 gigawatts through 2028. That's a 12 to 25% deficit in the power needed to run these AI systems. If you let that sink in, that's kind of crazy. We might not already have enough electricity to power the AI revolution. And that's the bottleneck that nobody is covering or talking about. Companies are already converting Bitcoin mining operations into AI data centers. They're firing up natural gas turbines. They're deploying fuel cells.

3:04The demand for electricity to run AI is about to strain the entire power grid. And there's a wild economic model they describe called the 15 15 15 dynamic. It's basically a 15-year data center leases at 15% yields generating $15 per watt in net value creation. The infrastructure buildout around this AI becoming one of the biggest investment opportunities in this generation. The second thing is jobs are already disappearing. You know that. You see it in the headlines. Real quick, before we keep going, if you're watching this and you want to actually build with some of these tools, not just watch videos about them, then you're going to want to check out our community down below Shipping School. We have a full clawed code course, a full open claw course, and [music] four live bootcamps every single

3:50week where we actually help you get set up from scratch. Like actually set this thing up. Not just watch a tutorial and figure it out by yourself. also provide one-on-one coaching so you could book a call with me. We could share screens and I can help you get clawed code or open claw running on your machine. That's it. No fluff. I built this community because watching YouTube's only gets you so far. We launched it just 3 days ago and we have over 55 members. You need people around you who are actually building, people who hold you accountable, and coaches who can help you when you get stuck. I'll put the link in the description down below. Get in now before the price goes up. And this is part of what I think that hits close to home for most people watching this. Morgan Stanley says executives are

4:35already executing large-scale workforce reductions because of the AI efficiencies. This isn't a future prediction. It's happening right now. We've already seen this play out in real time. Amazon forced its engineers to document work for 8 months. Then they fired them. They basically fed their AI SOPs and then cut 35,000 people. Meta, just this last week, laid off 16,000 people specifically to redirect the money towards AI. And the trend is accelerating, not slowing down. Companies are figuring out that AI can do a lot of the work that used to require large teams. Here's the thing, and this is my take on it. This is actually the biggest opportunity for small teams and solo builders that we've ever seen in a lifetime. Sam Altman said it himself that in this report, he

5:20envisions entirely new companies built by just one or five people that can outcompete large incumbents. Large incumbents are going to fall victim to one to five people teams like you and I. That's not science fiction. That's happening right now. I know because I'm living it. I run my entire content pipeline, my entire YouTube operation with AI agents on a Mac mini sitting right behind me. We've gained 5,000 subscribers in just a few months and all the content is basically on autopilot. The Rizza writes the scripts and outlines, Inspector Deck handles the X post, Ghostface does the intel scouting, Method Man clips my videos into shorts, the Jizza runs the skeri-azit. And I've got an agent crew doing the work that would normally require like a team of five to 10 people. And that's just me.

6:06Inside of Shipping School, the community, we have members building real products with AI. Dustin is building an AI title research tool for real estate. Colin is automating his entire customer pipeline. Faheem shipped a SaaS product in 3 weeks. These are regular people, not engineers at Google. They're using AI to build things that would actually have not been possible 2 years ago. So, when Morgan Stanley says breakthrough is coming and the world isn't ready, I'm not scared. I'm super fired up and I hope you are, too. The people who are already building with AI are going to be in the best position possible when that breakthrough hits. That's one more thing from this report that drove me crazy is they refer they reference Jimmy Ba, who is a co-founder of XAI, Elon Musk's AI company. He's saying that recursive

6:51self-improvement loops could emerge as early as the first half of next year. That's an AI autonomously upgrades its own capabilities. AI making itself smarter without any human intervention. That might sound scary and I'm on I'll just be straight up. It kind of is, but the thing to think about is the question isn't whether it's going to happen. It's going to happen regardless of our opinion. I just want you to be on the right side of it. So, are you going to be the person who spent last year building with AI, understanding how these tools work, developing the skills to direct and manage AI agents? Or are you going to be the person who ignored it and then woke up one day wondering what in the heck's going on in the world? I know which side I want to be on. It took me 35 years to figure out

7:36that key to success is positioning yourself before the wave hits, not after. I worked a minimum wage job for 15 years before I changed my mindset and started building. And then I've been a 6-year entrepreneur in 2020 when I lost my job. I didn't know what I was doing, but I knew I needed to learn some skills and apply them to build a business. You know, the people who are going to win are the ones who start moving before everyone else even sees what's coming. We had family friends over yesterday, you know, five people, adults, and they knew nothing what was happening in the AI space. I don't blame them. You know, we live in a small town, but it kind of should raise a red flag for you that, wow, even though you might be in the AI space, not a lot of people know what's going on. And those are the type of people that don't know what's going on are going to be the ones waking up one

8:22day going, "What happened? How did I just get fired?" You know, that's why I make these videos. And that's why I built the community around AI because I genuinely believe that the next 2 to 3 years are going to reshape the entire economy. And the builders, the people who are actually shipping with stuff AI right now are going to come out on top. So, let me give you a practical example of what this even means. Right now, today, you can use clawed code, codex, to build a SaaS app from scratch. You can use open claw to run AI agents that automate your entire business operation. You can use tools like claw team, which I talked about in the latest video, to have teams of AI agents collaborating on complex projects. A year from now, those tools are going to be dramatically more powerful. And that's the thing about exponential curves and network effects. They sneak up on you. You think the

9:07progress is gradual and then suddenly it's everywhere. Morgan Stanley is basically saying we're at that inflection point right now. So, what should you do? Here is my take. First, you need to start building with AI today, right now. Open claw is free. Even if it's just setting up clawed code or open claw and having it build something small. Get your hands dirty. Understand how these tools work because the learning curve now is way easier than learning from a year from now when everything is moving a thousand times faster. You need to also think about what AI can do for your specific situation. Maybe you're a freelancer and AI can help you make twice the clients. Maybe you're running a small business and AI agents can automate your customer support. Maybe you've got an idea for a product and AI can help you build and ship it in weeks instead of months. Whatever it is, the tools are here right

9:52now and they're only going to get better. You don't need to be a programmer. You don't need to have a computer science degree. I'm proof of that. I started Vibe coding about a year ago now, and I right now run 13 AI agents on a Mac Mini that does 90% of the work for all my businesses. Surround yourself with builders. That's the next thing is, you know, it's a very lonely thing Vibe coding, especially if you live in a small town. Being around other people that know and feel what you're talking about can help you hold you accountable to the things you want to build. That's why we built the community because building with AI can be lonely. It can be confusing when you're doing it by yourself. Well, you when you're in a community of 115 people all doing the same thing, sharing what works, helping each other, debugging problems, doing six live build sessions a week, the

10:37progress is so much faster. I've seen it with my own eyes. People going from zero to shipping a product in two or three days because they had the right support around them. Morgan Stanley's conclusion is pretty stark. They said the coin of the realm is becoming peer intelligence forged by computer and power. The explosion is arriving faster than anyone is prepared for, but you know what? I'm ready for it, and I hope you are, too, because we've been building. I know you've been trying to figure out what to build, and, you know, I've been shipping as much as I can, and I've been trying to learn and apply what I'm learning to these tools and developing these skills while everyone else is just sitting on the sidelines. If you're watching this and you haven't started yet, this is your sign. Don't wait through the Don't wait for the breakthrough. Build now so you

11:22could be ready when this does hit. The people who are going to thrive in this new economy are the ones who started before everyone else figured it out. I got the link to the community down below if you want to join us. We've got build sessions. We got courses in there as well, and you can work with me in a one-on-one setting if you'd like. You know, I'd love to have you, and I'd love to help you take the next step along in your journey. You know, Morgan Stanley says massive AI breakthroughs are imminent. I think we all know that, but to have Morgan Stanley say it, it's different. The world is not ready, but we are. And honestly, that's the best position to be in. While everyone else is scrambling to catch up, we've already been building for the future. Praise God on the timing on this. It's a great time to be alive. We're living in a great time to take your idea and to make it come to life. Never been easier. If you want more video updates like this, make

12:07sure you subscribe. Hit the bell icon cuz we release about four to six videos every single day. We'll see you in the next one. Have a blessed Sunday.