Abstract
Gravitational instabilities (GI's) probably occur in disks around young stellar objects during their early embedded phase. This paper reviews what is known about the nonlinear consequences of GI's for planet formation and disk evolution. All researchers agree that, for sufficiently fast cooling, disks fragment into dense clumps or arclike structures, but there is no universal agreement about whether fast enough cooling to cause fragmentation ever occurs and, if it does, whether any clumps that form will become bound protoplanets.