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The total combined liability of AI21 and all AI21 affiliates for any claim arising under or in connection with this agreement is capped at $5 USD, regardless of the theory of liability and even if AI21 was aware of the possibility of loss. This cap applies to the maximum extent permitted by applicable law.
This analysis describes what AI21 Labs's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision caps AI21's total contractual liability at $5 for all claims combined, regardless of the nature, severity, or basis of the claim. The cap applies to the extent permitted by applicable law, meaning mandatory consumer protection statutes in certain jurisdictions may limit its enforceability.
Interpretive note: Enforceability of the $5 liability cap depends on applicable jurisdiction; mandatory consumer protection laws in the EU, UK, and certain U.S. states may limit or override this cap.
The updated terms remove the explicit "Your Opt-Out Rights" button that previously allowed users to opt out of data sales and targeted advertising. In its place, the revised language establishes a general cookie consent framework requiring users to click "Accept" to allow cookies for site navigation, usage analysis, and marketing efforts. Users retain the ability to choose not to allow certain cookie types, but the prior dedicated opt-out mechanism for data sales and targeted advertising is no longer explicitly described in the accessible terms interface. If you wish to control cookie preferences, you can click on the cookie settings to modify consent for different types of cookies; however, strictly necessary cookies cannot be declined as they are required for core website functionality.
View change record →Under this clause, the maximum total amount recoverable from AI21 and its affiliates in connection with website use is $5 USD, subject to any mandatory consumer protection rights that cannot be waived under applicable local law.
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"THE COMBINED AGGREGATE LIABILITY OF AI21 AND ALL AI21 AFFILIATES UNDER, OR OTHERWISE IN CONNECTION WITH, THIS AGREEMENT SHALL NOT EXCEED FIVE US DOLLARS (US$ 5). THE FOREGOING EXCLUSIONS AND LIMITATIONS SHALL APPLY: (i) TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW (SUCH AS, FOR EXAMPLE, IF A JURISDICTION DOES NOT ALLOW THE EXCLUSION OR THE LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES, OR OF LIABILITY FOR PERSONAL INJURY OR DEATH CAUSED BY NEGLIGENCE); (ii) EVEN IF AI21 HAS BEEN ADVISED, OR SHOULD HAVE BEEN AWARE, OF THE POSSIBILITY OF LOSSES, DAMAGES, OR COSTS; (iii) EVEN IF ANY REMEDY IN THIS AGREEMENT FAILS OF ITS ESSENTIAL PURPOSE; AND (iv) REGARDLESS OF THE THEORY OR BASIS OF LIABILITY, INCLUDING WITHOUT LIMITATION BREACH OF WARRANTY, NEGLIGENCE, MISREPRESENTATION, STRICT LIABILITY, OR OTHER CONTRACT, TORT OR STATUTORY LIABILITY.Excerpt from AI21 Labs's Terms of Use
1. REGULATORY LANDSCAPE: This provision may be constrained by EU consumer protection directives and national implementation laws in EU member states, which may prohibit liability caps that deprive consumers of mandatory statutory protections. In the U.S., the FTC Act and state consumer protection statutes may limit the enforceability of liability caps in consumer-facing contexts. The agreement acknowledges that applicable law may limit the cap's scope. 2. GOVERNANCE EXPOSURE: Medium. A $5 aggregate liability cap is at the low end of liability limitation provisions observed in website terms of service. Its enforceability in consumer-facing contexts in the EU, UK, and certain U.S. states is uncertain and jurisdiction-dependent. For B2B or institutional users accessing the website, the cap may be more readily enforceable. 3. JURISDICTION FLAGS: EU/EEA and UK users are subject to heightened exposure, as mandatory consumer protection laws in these jurisdictions may limit or override the $5 cap. California residents benefit from a carve-out for mandatory consumer rights under applicable law. The agreement's governing law (Israel) adds an additional layer of jurisdictional complexity. 4. CONTRACT AND VENDOR IMPLICATIONS: For organizations assessing platform risk, the $5 liability cap means that contractual remedies against AI21 for website-related claims are effectively nominal. This is relevant where organizational users interact with AI21's website in a business context. 5. COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the $5 liability cap is enforceable in the jurisdictions where their users or employees access the AI21 website, particularly in the EU and UK. Consumer protection regulators in those jurisdictions may view nominal liability caps as unfair contract terms.
This provision caps AI21's total contractual liability at $5 for all claims combined, regardless of the nature, severity, or basis of the claim. The cap applies to the extent permitted by applicable law, meaning mandatory consumer protection statutes in certain jurisdictions may limit its enforceability.
Under this clause, the maximum total amount recoverable from AI21 and its affiliates in connection with website use is $5 USD, subject to any mandatory consumer protection rights that cannot be waived under applicable local law.
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