v3.26.1
Balance Sheets Details
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheets Details
Note 8 - Balance Sheets Details
Inventories consisted of the following (in thousands):
June 30, 2026December 31, 2025
Raw materials
$6,090 $15,939 
Work in progress
753 10,968 
Finished goods
25,823 36,719 
Total inventories
$32,666 $63,626 
As of June 30, 2026 and December 31, 2025, the Company’s inventory reserves were $20.1 million and $0.9 million, respectively.
During the three and six months ended June 30, 2026, the Company recorded a charge of approximately $11.8 million and $19.2 million, respectively, to cost of revenue related to provision for excess, obsolete, and scrapped inventory, compared with $0.5 million and $1.4 million, respectively, for the corresponding periods in 2025. These charges were primarily related to the transition to the next generation of the Company’s product offering.
Prepaid expenses and other current assets consisted of the following (in thousands):
June 30, 2026December 31, 2025
Prepaid expenses$144,482 $8,196 
Taxes receivable
21,510 4,795 
Unbilled receivables14,438 16,244 
Contract assets
4,795 — 
Other receivables and current assets
6,473 2,547 
Total prepaid expenses and other current assets
$191,698 $31,782 
Property and equipment, net consisted of the following (in thousands):
June 30, 2026December 31, 2025
Data center and computer equipment$403,579 $277,421 
Machinery and equipment31,400 25,370 
Leasehold improvements
38,790 22,348 
Construction in progress
604,030 163,451 
Property and equipment1,077,800 488,590 
Less: accumulated depreciation
(90,992)(51,194)
Total property and equipment, net
$986,808 $437,396 
Depreciation expense included in the condensed consolidated statements of operations was as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Cost of revenue
$18,482 $1,601 $28,353 $3,201 
Research and development
5,073 3,408 11,568 4,550 
Sales and marketing110 585 1,639 1,544 
General and administrative
712 6 991 20 
Total depreciation expense
$24,377 $5,600 $42,551 $9,315 
Accrued and other current liabilities consisted of the following (in thousands):
June 30, 2026December 31, 2025
Accrued purchases and expenses
$150,866 $59,458 
Accrued compensation
48,615 16,611 
Sales tax payable
19,494 35,577 
Product warranty liability
12,047 9,368 
Liability related to early exercised options
3,837 5,187 
Other
2,051 13,335 
Total accrued and other current liabilities
$236,910 $139,536 
The following table shows the changes in provision for product warranty during the six months ended June 30, 2026 and 2025 (in thousands):
Six Months Ended June 30,
20262025
Balance at beginning of year$9,368 $17,043 
Additions during the period8,430 9,000 
Utilization during the period(5,751)(12,903)
Balance at end of the period$12,047 $13,140