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manner that is unfavorable with respect to us, our business, financial condition, and results of operations could 
be adversely affected.

In  addition,  an  increasing  portion  of  our  compute  is  hosted  in  dedicated  data  center  facilities  that  are  leased 
and operated on our behalf by third parties rather than by our CSPs, and we expect this portion to grow. Certain 
of these operators have a limited operating history, and these facilities may have less geographic redundancy, 
failover capacity, or operational tooling than those of large-scale cloud environments, such that an equipment 
failure, cooling or network disruption, or operator error at a single facility could affect a meaningful portion of 
our available capacity. Moreover, the continuous availability of our models, platform, and applications depends 
on  the  reliable  supply  of  electrical  power  and  water  to  the  facilities  that  host  our  infrastructure,  whether 
operated  by  our  CSPs  or  on  our  behalf.  Utility  outages,  shortages,  price  increases,  or  required  curtailment  of 
power  during  periods  of  peak  demand,  whether  in  connection  with  or  outside  of  natural  disasters  or  other 
catastrophic  events,  could  interrupt  or  degrade  the  provision  of  our  services  in  the  ordinary  course  of  our 
business. See the sections titled “—Constraints on the critical inputs supporting compute could limit our ability 
to  secure  adequate  compute.”  and  “—Our  business,  financial  condition,  and  results  of  operations  may  be 
adversely affected by war, terrorism, natural disasters, public health crises, political crises, or other unexpected 
events.”

If we are unable to make acquisitions and investments, or successfully integrate them into our 
business,  our  business,  financial  condition,  and  results  of  operations  could  be  adversely 
affected.

As part of our business strategy, we will continue to consider a wide array of potential strategic transactions, 
including acquisitions of businesses, new technologies, services, and other assets and strategic investments that 
complement  our  business.  We  have  previously  acquired  and  continue  to  evaluate  targets  that  operate  in 
relatively  nascent  markets,  and  there  is  no  assurance  that  such  acquired  businesses  will  be  successfully 
integrated  into  our  business  or  generate  substantial  revenue.  In  addition,  we  may  overpay  for  acquisition 
targets  or  make  investments  at  valuations  that  do  not  ultimately  prove  justified  by  the  targets’  performance, 
strategic value, or market conditions, which could adversely affect our financial condition.

We may be unable to identify or complete prospective and attractive strategic transactions for many reasons, 
including  competition  from  other  potential  acquirers,  the  effects  of  consolidation  in  our  industry,  and 
potentially  high  valuations  of  acquisition  candidates.  Even  if  we  identify  strategic  transactions  or  enter  into 
agreements  with  respect  to  such  transactions,  applicable  antitrust  laws  and  other  regulations  may  limit  our 
ability to acquire targets or force us to divest all or a portion of our business or an acquired business. If we are 
unable to identify suitable targets or complete acquisitions, our growth prospects may suffer, and we may not 
be able to realize sufficient scale and technological advantages to compete effectively.

Acquisitions  involve  many  risks,  any  of  which  could  adversely  affect  our  business,  financial  condition,  and 
results of operations, including:

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intense  competition  for  suitable  acquisition  targets,  which  could  increase  prices  and  adversely  affect 
our ability to consummate deals on favorable or acceptable terms;

failure or material delay in closing a transaction;

transaction-related lawsuits or claims;

difficulties in integrating the technologies, operations, existing contracts, and personnel of an acquired 
company;

difficulties in retaining key employees, business partners, or customers of an acquired company;

challenges with integrating the brand identity of an acquired company with our own;

diversion  of  financial  and  management  resources  from  existing  operations  or  alternative  acquisition 
opportunities;

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