Small print.
Wide open.

Table of Contents

•

•

•

•

•

•

•

•

•

•

•

•

•

•

new and different sources of competition;

weaker protection for, and practical difficulties in enforcing, intellectual property and other legal rights 
outside of the United States compared to protections available domestically;

laws and business practices favoring local competitors;

compliance  challenges  related  to  the  complexity  of  multiple,  conflicting,  and  changing  governmental 
laws  and  regulations,  including  copyright,  employment,  tax,  privacy,  and  data  protection  laws  and 
regulations, export controls, and sanctions;

parties outside the United States seeking to circumvent sanctions and export controls;

increased financial accounting and reporting burdens and complexities;

increased costs in establishing infrastructure across various jurisdictions;

declines in the values of foreign currencies relative to the U.S. dollar;

restrictions on the transfer of funds;

potentially adverse tax consequences;

the cost of and potential outcomes of any claims or litigation;

future accounting pronouncements and changes in accounting policies;

changes in tax laws or tax regulations; and

regional and local economic and political conditions.

Entry into certain transactions with non-U.S. entities or persons may be subject to government regulations and 
review, including review by U.S. or non-U.S. government entities related to contemplated or past foreign direct 
investment  (“FDI”).  In  recent  years,  many  countries  around  the  world  have  adopted  FDI  regulatory  regimes 
that  seek  to  scrutinize  investments  into,  and  acquisitions  of,  domestic  companies  by  non-domestic  parties, 
granting  governments  broad  discretion  to  review  contemplated  and  past  investment  and  acquisition 
transactions.  These  FDI  regimes  may  restrict  our  ability  to  attract  investments,  invest  in  or  fund  partners 
outside  of  the  United  States  that  build  or  operate  data  centers  or  supply  infrastructure  for  us,  or  acquire 
promising  new  technologies,  companies,  and  talent  in  countries  around  the  world,  potentially  limiting  our 
ability to carry out our business strategy.

More  broadly,  increasing  geopolitical  tensions,  shifting  national  security  priorities,  and  evolving  technology-
focused trade, export control, investment, and data-governance regimes may result in restrictions, heightened 
scrutiny,  or  other  limitations  on  our  ability  to  operate,  sell  products,  partner  with  customers,  or  deploy  our 
models  in  certain  jurisdictions  or  with  certain  counterparties.  Governments  may  adopt  or  expand  policies 
aimed at protecting domestic technology ecosystems, restricting the cross-border flow of data, or limiting access 
to  AI  systems,  which  could  reduce  our  addressable  market,  increase  compliance  costs,  or  require  operational 
changes.  In  particular,  the  U.S.  government  has  increasingly  scrutinized  AI  companies’  exposure  to  Chinese 
state  actors,  and  future  executive  orders,  legislation,  or  regulatory  actions  could  restrict  our  ability  to  serve 
customers or users connected to China, impose new compliance obligations, lead us to implement anti-abuse 
mechanisms  or  other  technical  access  restrictions, or limit the deployment of our models in ways that reduce 
our addressable market. Any escalation of U.S.-China tensions, retaliatory measures by either government, or 
failure  or  perceived  failure  by  us  to  prevent  non-U.S.  state-actor  access  to  or  misuse  of  our  technology  could 
subject us to regulatory action, reputational harm, and adverse effects on our business, financial condition, and 
results of operations. 

As  we  continue  to  expand  our  business  globally,  our  success  will  depend,  in  large  part,  on  our  ability  to 
anticipate  and  effectively  manage  these  risks.  These  factors  and  others  could  adversely  affect  our  ability  to 
increase  non-U.S.  revenue  and,  consequently,  could  materially  impact  our  business.  The  expansion  of  our 
existing  non-U.S.  operations  and  entry  into  additional  non-U.S.  markets  will  require  significant  management 

102