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system  interruptions  and  degradation,  reputational  harm,  delays  in  our  product  development,  lengthy 
interruptions in our services, data breaches, malware, and other security or hacking incidents, all of which may 
adversely affect our business, financial condition, and results of operations. All of the aforementioned risks may 
be further increased if our disaster recovery plans prove to be inadequate. Further, the insurance we maintain 
may be insufficient to cover our losses resulting from such business interruptions, and any incidents may result 
in loss of, or increased costs of, such insurance.

If  we  are  unable  to  ensure  that  our  models,  platform,  and  applications  interoperate  with  a 
variety  of  software  applications  that  are  developed  by  others,  including  our  integration 
partners, we may become less competitive and our business, financial condition, and results 
of operations may be adversely affected.

Our models, platform, and applications must integrate with a variety of hardware and software platforms, and 
we  need  to  continuously  modify  and  enhance  our  models,  platform,  and  applications  to  adapt  to  changes  in 
hardware,  software,  and  browser  technologies.  In  particular,  we  have  developed  our  models,  platform,  and 
applications to be able to easily integrate with third-party applications, including the applications of software 
providers that compete with us as well as our partners, through the interaction of APIs. In general, we rely on 
the  providers  of  such  software  systems  to  allow  us  access  to  their  APIs  to  enable  these  integrations.  We  are 
typically subject to standard terms and conditions of such providers, which govern the distribution, operation, 
and fees of such software systems, and which are subject to change by such providers from time to time. Our 
business will be harmed if any provider of such software systems:

•

discontinues or limits our access to its software or APIs;

• modifies its terms of service or other policies, including fees charged to, or other restrictions on us, or 

other software developers;

•

•

•

changes how information is accessed by us or our customers;

establishes more favorable relationships with one or more of our competitors; or

develops or otherwise favors its own competitive offerings over our models, platform, and applications.

Further, we depend in part on operating systems, including mobile operating systems such as iOS and Android, 
and their respective application stores, such as Apple’s App Store and Google’s Play Store, to drive downloads of 
our Claude app. If such operating systems or application stores limit the availability of our app, make changes 
that degrade the functionality of our app, increase the cost of using our app, impose terms of use unsatisfactory 
to  us,  or  modify  their  search  or  ratings  algorithms  in  ways  that  are  detrimental  to  us,  or  if  our  competitors’ 
placement  in  such  mobile  operating  systems’  application  store  is  more  prominent  than  the  placement  of  our 
app, our user growth could be adversely affected. Any changes in such operating systems and application stores 
that degrade the functionality of our app or give preferential treatment to our competitors’ apps could adversely 
affect our platform’s usage across devices. Some marketplaces have explored changing their policies regarding 
what content is acceptable within an application. If we are unable to adapt to such changes, this could adversely 
affect our platform’s access to and usage within those ecosystems. As new mobile devices and mobile platforms 
are  released,  there  is  no  guarantee  that  certain  mobile  devices  will  continue  to  support  our  platform  or 
effectively roll out updates to our apps. Additionally, in order to deliver a high-quality app, we need to ensure 
that  our  models,  platform,  and  applications  are  designed  to  work  effectively  with  a  range  of  mobile 
technologies,  systems,  networks,  and  standards.  We  may  not  be  successful  in  developing  or  maintaining 
relationships  with  key  participants  in  the  mobile  industry  that  enhance  users’  experience.  If  users  encounter 
any  difficulty  accessing  or  using  our  apps  on  their  mobile  devices  or  if  we  are  unable  to  adapt  to  changes  in 
popular mobile operating systems, our prospects, business, financial condition, and results of operations could 
be adversely affected.

Third-party models, platforms, and applications are constantly evolving, and we may not be able to modify our 
models,  platform,  and  applications  to  assure  their  compatibility  with  that  of  other  third  parties.  In  addition, 
some  of  our  competitors  may  be  able  to  disrupt  the  operations  or  compatibility  of  our  models,  platform,  and 
applications with their models, platforms, or applications, or exert strong business influence on our ability to, 
and terms on which we operate our models, platform, and applications. Should any of our competitors modify 

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