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Our  ability  to  navigate  changes  in  the  competitive  landscape,  including  consolidation  among 
competitors or customers and strategic partnerships between competitors.

We believe that we compete favorably across these factors and are uniquely positioned at the frontier of AI.

Intellectual Property

Our  intellectual  property  is  an  important  aspect  of  our  business  and  helps  us  to  maintain  our  competitive 
position. To establish and protect our rights in our proprietary technology, we rely upon a combination of trade 
secret, copyright, patent, and trademark laws and contractual restrictions such as confidentiality agreements, 
licenses, and intellectual property assignment agreements.

We  control  access  to  our  intellectual  property  and  confidential  information  through  internal  and  external 
controls.  Access  to  our  most  critical  intellectual  property  is  tightly  controlled,  with  only  a  subset  of  our 
workforce  able  to  view  or  modify  these  systems.  We  maintain  a  policy  requiring  our  employees,  contractors, 
consultants,  and  other  third  parties  to  enter  into  confidentiality  and  proprietary  rights  agreements  to  control 
access to and maintain non-disclosure of our proprietary information and to protect our property rights.

As  part  of  our  broader  intellectual  property  strategy,  we  have  invested  in  a  patent  program  covering  certain 
technologies  relevant  to  our  business. As  of  September  30,  2026,  we  held  40  issued  U.S.  patents,  with  an 
additional 67 U.S. patent applications pending (including 32 nonprovisional and 35 provisional), and 26 issued 
patents in foreign jurisdictions, with an additional 12 patent applications pending. We continually review our 
development efforts to assess the existence and patentability of new intellectual property.

In  addition  to  our  patent  program,  we  have  an  ongoing  trademark  and  service  mark  registration  program 
pursuant to which we register our brand names and product names, taglines, and logos in the United States and 
other countries, to the extent we determine appropriate and cost-effective. As of September 30, 2026, we held 
29 registered trademarks in the United States, with an additional 11 applications pending, and 237 registered 
trademarks in foreign jurisdictions, with an additional 261 applications pending.

We intend to pursue additional intellectual property protection to the extent we believe it would be beneficial 
and  cost-effective.  Intellectual  property  laws  and  our  procedures  and  restrictions  provide  only  limited 
protection, and any of our intellectual property rights may be challenged, invalidated, circumvented, infringed, 
misappropriated, or violated. For more information, see the section titled “Risk Factors—If we fail to adequately 
protect  our  intellectual  property  rights,  our  competitive  position  may  be  impaired,  and  we  may  lose  valuable 
assets,  generate  reduced  revenue,  and  incur  costly  litigation  to  protect  our  rights,  which  may  adversely  affect 
our business, financial condition, and results of operations.”

Government Regulation

We  are  subject  to  laws  and  regulations  of  various  jurisdictions  and  government  agencies  affecting  our 
operations  and  the  provision  of  our  models,  platform,  and  applications,  and  we  have  been,  and  expect  to 
continue to be, subject to inquiries, investigations, and subpoenas by governmental authorities relating to such 
laws and regulations. We believe that the responsible development of AI requires thoughtful governance, and 
we  actively  support  efforts  by  governments  and  regulatory  bodies  to  establish  frameworks  that  promote  safe, 
beneficial  AI.  We  were  founded  on  the  premise  that  AI  systems  must  be  developed  with  safety  and  societal 
benefit as central priorities, and we believe that well-designed regulation can reinforce those values across the 
industry.  Because  AI  development  at  the  frontier  is  a  relatively  nascent  and  rapidly  evolving  field,  the  laws, 
regulations,  and  standards  in  place  today  were  not  necessarily  designed  with  these  technologies  in  mind.  We 
have  proactively  engaged  with  legislators,  regulators,  and  other  stakeholders  in  the  United  States  and 
internationally to promote the development of regulatory frameworks that we believe are good for society, our 
customers,  and  the  long-term  health  of  the  economy,  and  we  intend  to  continue  doing  so. For  example,  we 
entered into an agreement with the CAISSI whereby we committed to provide access to our models for testing 
and  evaluation  before  and  after  their  public  release,  agreed  to  provide  model  access  to  the  U.K.  AI  Security 
Institute  for  pre-deployment  testing  consistent  with  our  agreement  with  the  CAISSI,  and  publicly  endorsed 
California’s Transparency in Frontier Artificial Intelligence Act (SB 53).

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