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If we fail to attract new customers, retain existing customers, or expand usage of our models, 
platform, and applications, our business, financial condition, and results of operations could 
be adversely affected.

Our future growth depends on our ability to attract new customers, retain existing customers, and expand sales 
within our existing customer base. We face significant challenges in each of these areas, and failure to execute 
on  our  customer  acquisition  and  retention  strategies  could  adversely  affect  our  business,  financial  condition, 
and results of operations.

We must continue to attract new customers in a cost-effective manner. Potential customers may not understand 
the benefits of our models, platform, and applications or may be unable to justify the investment in our models, 
platform,  and  applications,  particularly as  existing  competitors  continue  to  enhance  their  offerings,  improve 
performance, expand functionality, or reduce costs. Our ability to demonstrate differentiated value to potential 
customers may become more difficult as this competition intensifies, or as large technology companies bundle 
AI capabilities into existing products. If we continue to focus on enterprise customers, we may face longer sales 
cycles that demand significant upfront investment in enterprise sales teams and customer service. These sales 
efforts are costly and may not result in customer conversion. 

Even  if  we  successfully  attract  new  customers,  we  face  significant  challenges  in  retaining  them.  Many  of  our 
customer contracts allow customers to reduce usage or terminate with limited or no notice. Customers are not 
obligated  to  renew  their  subscriptions  or  contracts  with  us.  Customer  retention  and  usage  levels  may  decline 
due to a number of factors, including:

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dissatisfaction with the performance, reliability, safety, or accuracy of our AI models; 

availability of competitive alternatives; 

customers developing their own AI capabilities internally; 

our  models,  platform,  and  applications  reducing  demand  for  our  customers’  offerings  or  causing 
disruptions to their businesses, which could lead to reduced usage or customer attrition;

changes in customer budgets or strategic priorities regarding AI investment; 

concerns about data privacy, security, or our data handling practices; 

negative publicity regarding AI generally or our business specifically; 

changes  in  the  regulatory  and  legal  landscape  surrounding  AI  and  our  models,  platform,  and 
applications in particular;

pricing changes or perception that our pricing is not competitive; and 

general economic conditions or industry-specific downturns affecting our customers. 

Our  ability  to  retain  customers  and  drive  expansion  also  depends  on  our  continued  investment  in  product 
development.  The  process  of  developing  products  and  incorporating  new  technologies  is  complex  and 
uncertain, and if we fail to accurately predict customers’ changing needs and emerging technological trends and 
opportunities, we may not be able to compete effectively and our business and ability to generate revenue could 
be  adversely  affected.  As  AI  technology  evolves  rapidly,  customers  may  perceive  our  models,  platform,  and 
applications  as  becoming  outdated  or  may  expect  continuous  improvements  to  model  performance  and 
capabilities.  Even  minor  degradations  in  model  performance  or  increases  in  response  latency  could  cause 
customers  to  reduce  usage  or  switch  to  competitors.  If  we  are  unable  to  retain  existing  customers  or  if  our 
customers  do  not  maintain  their  usage  levels,  our  revenue  and  growth  could  be  adversely  affected.  For 
additional  discussion  on  product  development,  see  the  section  titled  “—Our  success  depends  in  large  part  on 
our  ability  to  continue  to  develop  the  most  advanced  and  capable  AI  models,  and  any  failure  to  do  so  could 
adversely affect our business.”

Some  of  our  enterprise  customers  may  have  the  financial  resources,  technical  capabilities,  and  access  to  the 
talent and compute necessary to develop and deploy proprietary AI models, and may reduce or cease usage of 

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