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In addition, as we continue to grow our operations and reach a larger and increasingly global customer base, we 
need to be able to provide efficient services that meet our customers’ needs globally at scale, and our customer 
support teams may face additional challenges, including those associated with delivering support, training, and 
documentation in languages other than English and providing services across expanded time-zones. If we are 
unable  to  manage  the  foregoing  risks,  our  business,  financial  condition,  and  results  of  operations  could  be 
adversely affected.

Our product and investment decisions may not prioritize short-term financial results and may 
not  align  with  investor  expectations  or  preferences,  which  could  adversely  affect  the  market 
price of our Class A common stock. 

Our product and investment decisions are informed in large part by our commitment to AI safety, expanding 
our models, platform, and applications securely and responsibly, and providing high quality customer support, 
all of which, in addition to our status as a PBC, may not necessarily maximize short term financial results. While 
we generally believe that our product and investment strategy will improve our long-term financial results, we 
regularly make product and investment decisions that may or may be perceived to negatively impact our short-
term revenue or ability to achieve and sustain profitability. For example, we have in the past delayed the release 
of  new  models  or  features,  limited  their  availability,  imposed  usage  restrictions,  or  constrained  certain 
functionality until we determined that sufficient safety testing, evaluations, or mitigations were completed, such 
as with Mythos through Project Glasswing, which may have had a negative impact on our short-term revenue, 
and we may do so again in the future. 

Our  focus  on  AI  safety  and  responsible  deployment  may  also  require  us  to  incur  significant  additional  costs, 
including increased research and development expenses, additional personnel and infrastructure, and foregone 
or delayed revenue opportunities relative to competitors that may prioritize speed to market, broader access, or 
more permissive use of their products. These decisions may reduce customer adoption, limit usage by certain 
customers or use cases, or make our offerings less attractive, particularly when compared to competitors that do 
not adopt similar constraints. 

In  addition,  as  we  focus  on  responsibly  growing  our  customer  base  and  engagement  across  our  models, 
platform,  and  applications,  we  may  make  product,  pricing,  or  access  decisions  that  lead  to  less  short-term 
profits or engagement compared to our competitors. Customers, partners, or investors may not agree with or 
fully  understand  these  decisions  and  may  perceive  them  as  limiting  our  competitiveness  or  commercial 
potential, which could adversely affect our reputation, customer relationships, market adoption, or valuation. 
We  cannot  assure  you  that  our  long-term  strategy  will  ultimately  result  in  superior  financial  performance  or 
that the anticipated long-term benefits of these decisions will be realized on the timeline we expect, or at all. 
Any of the foregoing risks could adversely affect our business, financial condition, and results of operations.

Our investments in new products, technologies, and business initiatives may not produce the 
expected benefits and could adversely affect our business.

We  regularly  make  decisions  to  invest  in  new  products,  technologies,  business  lines,  and  strategic  initiatives, 
including  in  areas  outside  our  current  core  offerings,  and  the  outcomes  of  these  investments  are  inherently 
uncertain. These initiatives often require significant upfront investments of capital, research and development 
resources, and management attention, and their outcomes may not achieve widespread market adoption, may 
not  generate  revenue  at  anticipated  levels,  may  take  longer  than  expected  to  mature,  or  may  fail  entirely.  In 
addition, reallocating resources from our core offerings to pursue new initiatives could slow growth in existing 
products, reduce operating efficiency, or weaken our competitive position if those initiatives do not succeed. If 
our  investments  in  new  products  or  business  lines  do  not  produce  the  long-term  benefits  we  anticipate,  our 
business, financial condition, results of operations, and prospects could be adversely affected.

Certain  of  these  initiatives,  including  our  life  sciences  research  program,  which  involves  operating  laboratory 
facilities, and our research in robotics and physical AI, require us to engage in activities outside our historical 
experience  as  a  software  and  research  organization,  such  as  handling  biological  and  chemical  materials, 
operating  laboratory  and  robotic  equipment,  and  complying  with  biosafety,  occupational  health  and  safety, 
environmental,  hazardous  materials,  and,  potentially,  preclinical  and  clinical  research  regulations.  These 
activities expose us to categories of liability, including for workplace injury and environmental contamination, 
that differ from those associated with our core business, and any drug candidates or other discoveries resulting 

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