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our ability to collect amounts owed to us from customers, including as a result of customer credit risk, 
billing disputes, or delays in payment;

our reliance on, and the terms of, relationships with key partners and distribution channels, and any 
changes to, or termination of, such arrangements;

new or more restrictive laws, regulations, or regulatory actions affecting AI development, deployment, 
or  use,  including  taxes,  fees,  or  other  measures  specifically  applicable  to  AI  companies  or  AI-related 
labor displacement; and

reputational  harm,  adverse  publicity,  or  heightened  scrutiny  that  reduces  customer  adoption  or 
expansion.

We expect to continue to make investments in the development and expansion of our business, which may not 
result in increased revenue or growth. If our revenue or revenue growth rate declines, or our revenue growth 
rate  declines  with  respect  to  certain  markets  or  customer  categories,  our  business,  results  of  operations,  and 
investors’  perceptions  of  our  business  could  be  adversely  affected,  which  could  in  turn  negatively  impact  the 
market price of our Class A common stock.

If  we  fail  to  manage  our  growth  effectively,  our  brand,  business,  financial  condition,  and 
results of operations could be adversely affected.

Since  2021,  we  have  experienced  rapid  growth  in  our  employee  headcount,  number  of  customers,  geographic 
reach, and our operations, and we expect this growth to continue. For example, the number of our employees 
increased from approximately 940 as of December 31, 2024 to approximately 5,300 as of September 30, 2026, 
and our revenue increased from $197 million for the three months ended December 31, 2024 to $           for the 
three  months  ended  September  30,  2026.  This  growth  has  placed,  and  may  continue  to  place,  a  significant 
strain on our management and our operational and financial resources. 

Our  ability  to  successfully  manage  this  growth  depends  on  our  ability  to  scale  and  integrate  our  operations, 
workforce,  technologies,  models,  platform,  and  applications,  and  any  future  acquisitions  while  preserving  the 
beneficial aspects of our company culture. Continued growth may strain our ability to develop and enhance our 
operational,  compliance,  technical,  financial,  and  management  controls,  improve  our  reporting  systems  and 
procedures,  recruit,  train,  and  retain  highly  skilled  personnel,  and  maintain  customer  satisfaction.  If  we  are 
unable to do so, our operations, compliance with applicable laws, development and deployment of our models, 
platform, and applications, and customer experience could be adversely affected.

As we expand, we must also manage an increasing number of relationships with strategic partners, customers, 
vendors,  and  other  third  parties  that  are  critical  to  our  business,  including  those  that  provide  compute,  data 
center  infrastructure,  networking,  software  tools,  and  other  services  necessary  to  develop,  train,  deploy,  and 
operate our models. If these relationships deteriorate, or if our third-party providers are unable to scale their 
services in line with our growth, we may experience delays, service disruptions, reduced sales to new customers, 
or the loss of existing customers, which could adversely affect our revenue growth and reputation. In addition, 
our ability to manage our growth depends in part on our ability to accurately plan for and efficiently manage the 
compute  required  to  develop,  train,  deploy,  and  operate  our  models.  Any  material  underinvestment  or 
overinvestment in such resources could result in service limitations, increased costs, operational inefficiencies, 
or delays in model development, any of which could adversely affect our business.

If  we  fail  to  effectively  manage  the  growth  of  our  business  and  operations,  we  may  be  unable  to  maintain 
effective  internal  controls,  reporting  systems,  and  compliance  processes,  may  face  increased  regulatory 
scrutiny,  and  may  suffer  harm  to  our  brand  and  our  ability  to  attract  and  retain  customers.  As  a  result,  our 
business, financial condition, and results of operations could be adversely affected. 

We have a history of net losses and may not generate sufficient revenue to achieve or sustain 
profitability in the future.

We have incurred net losses in each year since our founding, including a net loss of $1.5 billion, $8.3 billion, 
and $42.0 billion for the years ended December 31, 2023, 2024, and 2025, respectively, and $80.7 billion for 
the six months ended June 30, 2026, and we may not achieve or sustain profitability in the future. These net 

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