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escalators  and  include  take-or-pay  compute  payment  obligations  and  uncapped  fuel  cost  pass-throughs  that 
apply for the duration of the term regardless of actual utilization.

Our increasing efforts to build out our compute and infrastructure require substantial capital expenditures and 
are  changing  the  cash  flow  profile  of  our  business.  Whereas  the  compute  purchased  through  our  CSP 
arrangements is generally paid as the compute becomes available to us, we expect an increasing portion of our 
compute  and  infrastructure  investment  to  take  the  form  of  capital  expenditures  and  other  commitments, 
including  lease  obligations,  that  require  significant  upfront  payments  well  in  advance  of  the  related  compute 
becoming  operational.  Our  existing  commitments  are  substantial,  and  we  expect  our  capital  expenditures  to 
increase significantly as we continue to expand our compute and infrastructure build-out. See the section titled 
“Management’s  Discussion  and  Analysis  of  Financial  Condition  and  Results  of  Operations—Liquidity  and 
Capital  Resources”  for  more  information.  As  a  result,  we  expect  these  investments  to  result  in  significant  net 
cash  used  in  operating  and  investing  activities  for  the  foreseeable  future,  and  our  net  cash  used  in  these 
activities may increase regardless of whether our financial performance improves. The magnitude and timing of 
these investments are inherently uncertain and may change materially over short periods, including as a result 
of  decisions  to  accelerate  or  expand  our  build-out,  and  such  changes  could  rapidly  and  significantly  alter  our 
expected results of operations and cash flows for a given period. If our cash flows from operations and available 
capital are insufficient to fund these investments, we may be required to raise additional capital on unfavorable 
terms  or  to  reduce,  defer,  or  forgo  planned  investments,  any  of  which  could  adversely  affect  our  business, 
financial condition, and results of operations.

If  we  are  unable  to  successfully  execute  on  our  data  center  infrastructure  initiatives,  experience  significant 
delays  or  cost  overruns,  or  find  that  the  infrastructure  we  lease,  deploy,  or  build  does  not  meet  our  evolving 
needs, we may not realize the expected benefits of these investments, which could adversely affect our business, 
financial condition, and results of operations. 

We may not successfully build, expand, and deploy our sales and marketing organization in a 
timely  manner,  or  we  may  not  successfully  hire,  retain,  train,  and  motivate  our  sales 
personnel. 

We have grown, and will continue to grow, our direct sales force. Whether we are able to increase our sales to 
existing customers, identify and engage new customers, and enter new U.S. and non-U.S. markets, each with a 
focus  on  broadening  use  of  our  models,  platform,  and  applications  across  departments  and  entire 
organizations,  will  depend,  among  other  things,  on  our  ability  to  successfully  test  new  market  segments  and 
customer  types,  validate  product-market  fit  through  early  customer  engagement,  timely  and  effectively  scale 
our  sales  motions,  and  adapt  quickly  when  market  conditions  change.  We  have  limited  experience  building, 
managing,  and  scaling  a  direct  sales  force.  We  have  dedicated  and  plan  to  continue  to  dedicate  significant 
resources  to  sales  and  marketing  programs  and  to  expand  our  sales  and  marketing  capabilities  to  target 
potential customers and achieve broader market adoption of our models, platform, and applications, but there 
is  no  guarantee  that  we  will  be  successful  in  attracting  and  maintaining  additional  customers.  Moreover, 
identifying, recruiting, training, and managing sales personnel requires significant time, expense, and attention, 
including  from  our  senior  management  and  other  key  personnel,  as  there  is  significant  competition  for  sales 
personnel  with  the  skills  and  technical  knowledge  that  we  require,  including  the  ability  to  understand  and 
communicate  complex  and  evolving  AI  use  cases,  regulatory  considerations,  customer  risk  sensitivities,  and 
rapidly  changing  product  capabilities.  These  challenges  are  particularly  acute  for  international  expansion, 
which requires qualified personnel with international experience, language skills, cultural competencies in the 
geographic markets which we target, and an aligned mission-oriented culture. If we are unable to successfully 
manage  the  foregoing  risks,  our  prospects,  business,  financial  condition,  and  results  of  operations  could  be 
adversely affected. 

We  periodically  make  adjustments  to  our  sales  and  marketing  organization  in  response  to  market 
opportunities,  product  introductions  or  enhancements,  acquisitions,  and  other  internal  and  external 
considerations.  Any  future  sales  and  marketing  organization  changes  may  result  in  a  temporary  reduction  of 
productivity, which could negatively affect our rate of growth. In addition, any significant change to the way we 
structure and implement the compensation of our sales and marketing organization may be disruptive or may 
not be effective and may adversely affect our revenue growth. If we are unable to attract, hire, develop, retain, 
and  motivate  qualified  sales  and  marketing  personnel,  if  our  new  sales  personnel  are  unable  to  achieve 
sufficient  sales  productivity  levels  in  a  reasonable  period  of  time  or  at  all,  if  our  marketing  programs  are  not 

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