Small print.
Wide open.

Table of Contents

added,  and  other  taxes,  with  tax  authorities  potentially  disagreeing  with  our  positions  and  international  tax 
developments affecting our effective tax rate. We are also subject to anti-corruption, anti-bribery, anti-money-
laundering, environmental, accessibility, advertising, and government procurement regulations. Our healthcare 
and life sciences offerings, and our customers’ use of our models, platform, and applications in those sectors, 
may  also  be  subject  to  laws  and  regulations  governing  drugs,  biologics,  and  medical  devices,  including  those 
administered  by  the  U.S.  Food  and  Drug  Administration  and  comparable  non-U.S.  authorities,  as  well  as 
healthcare  fraud  and  abuse  laws,  laws  governing  the  privacy  and  security  of  health  information,  including 
HIPAA,  and  laws  governing  the  practice  of  medicine  and  the  use  of  AI  in  healthcare.  Failure  to  comply  with 
these laws could result in enforcement actions, fines, penalties, litigation, reputational harm, and restrictions 
on  our  operations  that  could  adversely  affect  our  business,  and  the  evolving  regulatory  landscape  creates 
significant uncertainty regarding future compliance requirements.

See  the  sections  titled  “Risk  Factors—Our  business  is  subject  to  an  evolving  and  uncertain  regulatory  and 
political  environment,  which  could  increase  our  costs,  restrict  our  operations,  or  adversely  affect  demand  for 
our  models,  platform,  and  applications,”  “Risk  Factors—We  are  subject  to  complex  and  evolving  laws, 
regulations,  and  other  legal  obligations  related  to  privacy  and  data  protection,  and  any  actual  or  perceived 
failure to comply with such obligations could adversely affect our business, financial condition, and results of 
operations,”  “Risk  Factors—Governmental  trade  controls,  including  export  and  import  controls,  sanctions, 
customs requirements, and related regimes, could subject us to liability or loss of contracting privileges or limit 
our  ability  to  compete  in  certain  markets”  and  “Business—Legal  Proceedings—Other  Matters”  for  more 
information regarding risks we face related to government regulation.

Facilities

Our headquarters is located in San Francisco, California. We also maintain international offices in Europe and 
Asia-Pacific.  We  believe  that  our  current  office  facilities  are  adequate  to  meet  our  current  needs  and  that, 
should it be needed, suitable additional or alternative space will be available to accommodate our operations. 

We also lease data centers in the United States and have committed billions towards expanding U.S. computing 
infrastructure. We have also entered into leases for data center capacity in Australia and Canada, and we are 
pursuing data center capacity in additional jurisdictions outside the United States. We continue to evaluate new 
locations for future data centers, including in the United States and abroad. 

Legal Proceedings

We are currently involved in, or may in the future be involved in, legal proceedings and claims that arise in the 
ordinary course of business, including those involving intellectual property disputes, compliance with legal or 
regulatory  regimes,  government  approvals  and  authorizations,  labor  and  employment,  anti-discrimination, 
commercial  disputes,  competition,  data  privacy,  customer  complaints,  and  other  matters  relating  to  our 
technology, products, and services. In addition, third parties may from time to time assert claims against us in 
the  form  of  letters  and  other  communications.  For  more  information  regarding  legal  proceedings  and  other 
claims in which we are involved, see the section titled “Legal Matters” in Note 13 to our consolidated financial 
statements included elsewhere in this prospectus.

Future litigation may be necessary or warranted to defend ourselves or our partners or to establish or assert our 
rights.  The  results  of  any  current  or  future  legal  proceedings  or  litigation  cannot  be  predicted  with  certainty, 
and  regardless  of  the  outcome,  legal  proceedings  or  litigation  can  have  an  adverse  impact  on  us  because  of 
defense and settlement costs, diversion of management resources, and other factors. 

Intellectual Property Matters

We  have  in  the  past  been,  are  currently,  and  may  in  the  future  be  involved  in  legal  proceedings  related  to 
alleged violation and infringement of copyrights and other intellectual property, and in the ordinary course of 
business, we also receive correspondence from other purported rightsholders of intellectual property asserting 
potential claims of violation and infringement of such intellectual property.

A series of lawsuits has been filed against us in federal and international courts by plaintiffs asserting copyright 
infringement  based  on  the  use  of  copyrighted  material  to  train  our  models.  For  example,  in  August  2024,  a 

240