Operator

Good day, and welcome to the AMERISAFE First Quarter 2026 Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Kathryn Shirley, Chief Administrative Officer. Please go ahead.

Kathryn Shirley
Executive VP, Chief Administrative Officer & Secretary

Thank you, operator, and good afternoon, everyone. Welcome to the AMERISAFE 2026 First Quarter Investor Call. If you have not received the earnings release, it is available on our website at amerisafe.com.

Today, this call is being recorded. A replay of today’s call will be available. Details on how to access the replay are in the earnings release.

During this call, we will be making forward-looking statements intended to fall within the safe harbor provided under the securities law. These statements are based on current expectations and assumptions that are subject to various risks and uncertainties. Actual results may differ materially from the results expressed or implied in these statements.

If the underlying assumptions prove to be incorrect or as the results of risks, uncertainties and other factors, including factors discussed in the earnings release, in the comments made during today’s call and in the Risk Factors section of our Form 10-K, Form 10-Q and other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statements.

I will now

SAN FRANCISCO — xAI’s popular Grok chatbot faced scattered connectivity issues and response delays Thursday as some users reported errors while trying to interact with the AI on the web, mobile apps and integrated X platform, though official status pages indicated services remained largely operational with no major declared incidents.

Complaints surfaced Wednesday evening and early Thursday, with users describing messages such as “Sorry about that, something didn’t go as planned. Please try again” or temporary unavailability for chat responses and image generation. A handful of posts on X directly asked whether Grok was down, while others noted slower replies or failed prompts even for simple queries.

xAI’s official status dashboard at status.x.ai showed “Service fully operational” for Grok (Web), Grok on iOS and Android, and API endpoints as of early Thursday. The company reported no active incidents and high uptime over the past 30 days. Independent monitoring sites presented a mixed picture: some detected user-reported spikes in problems linked to high demand, while others confirmed normal operation.

Downdetector and similar trackers logged increased reports in the past 24 hours, with the majority centered on the mobile app followed by the website. Common issues included delayed responses, login hiccups and temporary “high demand” messages that prevented immediate access for some free-tier or lighter-subscription users. StatusGator noted hundreds of user-submitted reports attributing slowdowns to surging traffic rather than outright server failure.

The timing coincided with growing global interest in Grok, which has seen rapid adoption since its launch and subsequent model updates. As one of the more uncensored and real-time capable AI assistants, Grok often experiences traffic spikes during major news events, viral memes or when competing chatbots face their own limitations. Analysts suggested that recent model enhancements and expanded features could be driving heavier usage, occasionally straining resources even without a full outage.

xAI has not issued a public statement on the latest reports. In past episodes of high demand, the company has encouraged users to wait a few minutes and retry, noting that backend systems automatically scale but can still show temporary friction for some accounts. SuperGrok subscribers and X Premium users have generally reported fewer interruptions, pointing to possible prioritization in resource allocation during peak loads.

For affected users, common troubleshooting steps include refreshing the browser, restarting the app, clearing cache, checking internet connection or trying the service at a less busy time. Some also switched between grok.x.ai, the X app integration and mobile versions to regain access. Persistent problems may warrant checking xAI’s status page or waiting for automatic resolution, as many prior “outages” resolved within one to two hours without intervention.

This is not the first time Grok has drawn attention for availability questions. Earlier in 2026, brief disruptions occurred around major updates or high-traffic periods, often resolved quickly. Unlike some competitors that have suffered prolonged global blackouts, Grok’s issues have typically been localized or demand-related rather than widespread infrastructure failures.

The chatbot’s integration with the X platform adds another layer: when X experiences heavy usage, Grok responses embedded in the app can feel slower even if core servers are stable. Users in different regions, including Asia and Europe, reported varying experiences, with some in high-demand time zones noticing more delays.

xAI continues to invest heavily in infrastructure, including new data centers and optimized inference systems, to support growing demand. Elon Musk, xAI’s founder, has publicly emphasized the goal of making Grok maximally truth-seeking and available to as many users as possible, while balancing compute costs and performance.

Industry observers noted that AI services worldwide face similar challenges as adoption surges. Rapid growth in conversational AI means companies must constantly balance user experience against backend capacity. Grok’s real-time knowledge via X and less restrictive personality have made it especially popular, sometimes leading to usage patterns that stress systems more than purely productivity-focused tools.

For subscribers wondering about paid tiers, SuperGrok and higher X Premium plans often provide priority access during congested periods. Free users may encounter rate limits or “try again later” prompts more frequently. xAI has not detailed exact thresholds but has hinted at ongoing improvements to fairness and scalability.

As of Thursday morning, most users appeared able to access Grok normally after short waits, suggesting the reported problems were intermittent rather than a systemic outage. Monitoring sites showed reports tapering off after initial spikes, consistent with past demand-driven fluctuations.

The episode highlights the evolving nature of consumer AI services. What once were occasional server issues have become tests of how well companies manage explosive growth. Grok’s team has a track record of transparent communication via status pages and quick fixes, helping maintain user trust even during rough patches.

Meanwhile, competitors like OpenAI’s ChatGPT, Google’s Gemini and Anthropic’s Claude have faced their own intermittent availability questions in recent months, underscoring that no major AI chatbot is immune to scaling pains. Users have grown accustomed to checking dedicated status dashboards rather than assuming permanent downtime.

For those still encountering errors, experts recommend trying incognito mode, a different device or network, and monitoring official channels. If problems persist beyond a few hours, reaching out through X support or xAI feedback channels can help surface individual account issues.

Grok’s development team continues pushing model improvements, with hints of larger versions and enhanced capabilities on the horizon. Such updates often precede temporary strain as new features attract fresh waves of users testing limits.

In the broader context, Thursday’s scattered reports serve as a reminder of how reliant millions have become on AI assistants for everything from quick facts to creative tasks. Brief hiccups, while frustrating, rarely signal deeper problems when official systems show green across the board.

As traffic normalizes, most users should regain seamless access. xAI’s focus on rapid iteration suggests any underlying demand pressures will be addressed through expanded capacity rather than reduced features.

The situation remains fluid, but current indicators point to high demand rather than a full-scale outage. Users are advised to stay patient, try again shortly, and consult status.x.ai for the latest confirmed information.

Grok’s resilience amid rapid growth reflects both its popularity and the challenges of delivering cutting-edge AI at global scale. For now, the service appears operational for the vast majority, with only pockets of users navigating temporary speed bumps on an otherwise busy Thursday.

The clarification came after two Indian vessels had to turn back from the Strait of Hormuz after Iranian forces fired upon them as they attempted to cross the crucial waterway on April 18.

Before turning back, the captain of Indian tanker Sanmar Herald, in an audio recording that has surfaced, is heard pleading with Iranian forces to stop firing despite prior clearance to pass the Strait of Hormuz. “This is motor vessel, Sanmar Herald. You gave me clearance to go, my name is second on your list… You are firing now. Let me turn back.” While New Delhi has consistently rejected claims of any financial arrangements with Tehran for ship movement through the critical energy corridors, some reports linked the April 18 incident to a crypto scam.Reports suggest scammers are offering shipowners fake safe passage through the strait in exchange for crypto. At least one ship fell victim to the scam and was fired at while attempting to pass through the waterway, according to Marisk, a maritime risk services company.

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At a news briefing, Mukesh Mangal, Additional Secretary in the Ministry of Ports, Shipping and Waterways, termed as “fake news” the report of any payment being made for the safe passage of Sanmar Herald.
“News is spreading about a reported payment by the captain of the vessel Sanmar Herald in US dollar to persons claiming to represent the Islamic Revolutionary Guard Corps (IRGC) Navy to grant passage, and fell victim to cyber criminals. We spoke with the owner of the vessel, and he confirmed that it is fake news and no such incident had happened,” he said.He said his ministry, in coordination with the Ministry of External Affairs, assesses the situation before asking Indian vessels, stranded in the Persian Gulf since the start of the Iran war, to cross the Strait of Hormuz.

“This unfortunate incident (of Iranian guards firing on Indian ships) happened on April 18. There was firing on two of our vessels, that’s why they had to go back,” he said. “As we have been telling in past also, we do not have any new data, any confirmation on any of our vessels has paid money to any of the authorities for this purpose.”

He termed as “fake news” reports suggesting that Sanmar Herald paid money to some cybercriminals, and that’s why it was fired upon.

“There is no relation (between the firing and the reports),” he said. “This is fake news.”

Chennai-based Sanmar Shipping denied any payment.

“It has come to our attention that there have been reports on social media about Sanmar Shipping’s very large crude carrier, Sanmar Herald, flying the Indian flag, falling prey to a cryptocurrency scam.

“We would like to clarify that these reports are completely false,” it said in a statement.

The shipping line said it is working in close coordination with the relevant agency of the Indian government to ensure the safe passage of Sanmar Herald.

According to shipping monitor TankerTrackers.com, two India-flagged ships, including a supertanker carrying Iraqi crude, were forced to turn back on April 18 after coming under fire.

The disruptions come as scores of commercial vessels and thousands of seafarers remain stranded in the Persian Gulf since the outbreak of the West Asia war on February 28, which has sharply curtailed movement through the Strait of Hormuz.

The Strait of Hormuz handles about a fifth of global oil and liquefied natural gas flows, making it one of the world’s most critical energy arteries. Iran’s ability to disrupt traffic through the narrow passage has emerged as a key lever in the conflict.

The halt in transit has driven up energy prices, triggered supply shortages in parts of the world and forced some countries to ration fuel, underscoring the global impact of the standoff.