Small print.
Wide open.

Table of Contents

our  models,  platform,  and  applications  as  their  internal  AI  capabilities  mature,  even  where  they  initially 
adopted our offerings as a foundation for their AI strategy. If these customers were to reduce or cease usage of 
our models, platform, and applications, our revenue and growth could be adversely affected.

In addition to retaining customers, our growth strategy depends in part on expanding usage within our existing 
customer  base  by  increasing  usage  volumes,  selling  additional  capabilities,  and  expanding  adoption  across 
departments and use cases within customer organizations. However, customers may not expand their usage for 
a variety of reasons, including satisfaction with current usage levels, budget constraints, technical challenges in 
integrating our models, platform, and applications more broadly within their organizations, or preference for 
multi-vendor AI strategies in order to limit dependence on any single provider. Due to our consumption-based 
pricing  model,  customers  may  reduce  or  cease  usage  at  any  point  within  a  given  period  due  to  budget  or 
internal procurement constraints, organizational spending controls, or other factors unrelated to the quality or 
performance of our models, platform, and applications, and may not resume usage until a new budget period 
commences  or  additional  spend  is  approved,  even  where  demand  for  our  models,  platform,  and  applications 
remains strong. As a result, our revenue could be lower or more variable than anticipated and this effect may be 
particularly pronounced among customers experiencing rapid growth in their usage of AI. If we increase sales 
and marketing expenditures to accelerate customer acquisition without achieving proportional revenue growth 
and  if  we  cannot  attract  new  customers,  retain  existing  customers,  expand  within  our  customer  base,  or 
accomplish these objectives in a cost-effective manner or timely manner, our revenue growth will decline and 
our business, financial condition, and results of operations will be adversely affected.

If the market for our models, platform, and applications develops more slowly than we expect 
or declines, our growth may slow or stall, and our business, financial condition, and results of 
operations could be adversely affected.

The  market  for  AI  technologies,  including  frontier  AI  and  related  models,  platforms,  and  applications,  has 
grown rapidly in recent years, but is still relatively nascent and evolving rapidly, and it is uncertain whether the 
market  for  such  AI  technologies  will  achieve  or  sustain  widespread  adoption  at  the  pace  or  to  the  extent  we 
expect. Our ability to generate revenue and achieve sustainable growth depends in significant part on the extent 
to which enterprises, software developers, and other users adopt AI technologies, integrate them into existing 
workflows, expand usage over time, and are willing to pay for our models, platform, and applications at levels 
that support durable economic value at scale. Market adoption may be slower than anticipated due to factors 
such as uncertainty regarding the cost, performance, reliability, and perceived value of AI solutions; increased 
regulation;  concerns  about  security,  privacy,  legal  and  regulatory  compliance,  or  ethical  considerations; 
technological  challenges;  level  of  effort  and  expense  associated  with  integration  efforts;  competition  from 
alternative  or  emerging  technologies;  the  availability  or  adoption  of  complementary  infrastructure  and 
workflows;  or  reductions  in  corporate  spending  due  to  macroeconomic  conditions.  Moreover,  demand  for 
frontier  models  may  decline  if  customers  determine  that  less  advanced,  lower-cost  models  are  sufficient  for 
their  particular  use  cases.  As  AI  capabilities  improve  across  the  industry  and  a  broader  range  of  models 
becomes  available,  customers  may  conclude  that  incremental  performance  gains  at  the  frontier  do  not  justify 
the  additional  cost,  and  may  migrate  toward  smaller,  cheaper,  or  open-source  alternatives  that  adequately 
address  their  needs.  If  we  are  unable  to  demonstrate  sufficient  differentiated  value  from  our  frontier  models 
relative to less capable alternatives, our revenue and growth could be adversely affected, even in a market where 
overall AI adoption continues to grow. Further, while AI adoption may continue or accelerate in certain areas, 
the  long-term  trajectory  of  this  technological  trend  is  uncertain,  and  market  understanding,  acceptance,  and 
valuation  of  AI-enabled  models,  platforms,  and  applications  may  be  inaccurate  or  change  over  time  and 
adoption  may  occur  unevenly  across  industries,  geographies,  and  customer  types.  If  growth  in  the  AI  market 
does not translate into sustained customer demand for our offerings, expanded usage, and increased revenue, 
or  if  anticipated  use  cases  fail  to  materialize,  our  prospects,  business,  financial  condition,  and  results  of 
operations could be adversely affected.

The political environment and our engagement with policymakers and public positions on AI 
regulation  and  safety  could  subject  us  to  heightened  scrutiny,  political  backlash,  or 
disproportionate regulatory action.

Our  commitment  to  responsible  and  safe  AI  development  includes  active  engagement  with  policymakers, 
regulators,  and  other  stakeholders  regarding  the  development  of  AI-related  laws,  regulations,  and  standards. 
We  have  participated  in,  and  will  likely  continue  to  participate  in,  political  processes,  including  through 

43