If Cerebras causes you harm through its service, the most they will ever have to pay you is either what you paid them in the past year or $100, whichever is higher.
This analysis describes what Cerebras'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
For businesses that have paid significant fees for API access or training services, this cap may be far lower than their actual losses from a service failure, data loss, or IP issue.
This clause substantially limits the financial compensation a user can recover from Cerebras regardless of the severity of a service failure or breach, meaning significant business losses may not be recoverable through contract claims.
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Except as stated in Section L.3.b, the liability of each party, and its affiliates and licensors, for any damages arising out of or related to these Terms (i) excludes damages that are consequential, incidental, special, indirect, or exemplary damages, including lost profits, business, contracts, re...
TO THE MAXIMUM EXTENT PERMITTED BY LAW, NEITHER WHATNOT NOR ITS SERVICE PROVIDERS INVOLVED IN CREATING, PRODUCING, OR DELIVERING THE SERVICES WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOST REVENUES, LOST SAVINGS, LOST BUSINESS OPPORT...
In no event will either party's aggregate liability arising out of or related to this Agreement exceed the total fees paid or payable by Customer in the twelve (12) months preceding the claim. In no event will either party be liable for any indirect, incidental, special, consequential, or punitive d...
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"IN NO EVENT WILL CEREBRAS'S TOTAL LIABILITY TO YOU FOR ALL DAMAGES, LOSSES OR CAUSES OF ACTION EXCEED THE AMOUNT YOU HAVE PAID CEREBRAS IN THE LAST 12 (TWELVE) MONTHS, OR, IF GREATER, $100.— Excerpt from Cerebras's Cerebras Terms of Service
REGULATORY LANDSCAPE: Liability cap clauses are standard in technology service agreements and generally enforceable in commercial contracts under California law. However, their enforceability against consumers (as opposed to business customers) may be limited in certain jurisdictions, including EU member states where unfair contract terms directives may apply. The FTC may scrutinize caps that are applied in contexts where consumers were not given meaningful disclosure. GOVERNANCE EXPOSURE: Medium. For individual or small-scale users the $100 floor provides minimal recourse. For enterprise customers who may pay substantial fees, the 12-month payment cap could still represent a significant shortfall relative to consequential damages from service disruption or IP disputes. The clause is written in all-caps, consistent with conspicuousness requirements under the UCC for limitation of liability clauses in some jurisdictions. JURISDICTION FLAGS: EU/EEA consumers may have statutory rights that supersede contractual liability caps for certain types of harm. Some U.S. states limit the enforceability of limitation clauses in consumer contracts where the limitation is unconscionable. California courts have occasionally found such caps unenforceable where there is a significant disparity in bargaining power. CONTRACT AND VENDOR IMPLICATIONS: Enterprise customers and procurement teams should treat this cap as a negotiation point in any master service agreement. For high-value or mission-critical deployments, procurement teams should seek uncapped liability for data breaches, IP infringement claims, or gross negligence. The clause does not distinguish between direct and consequential damages, which may affect how courts interpret its scope. COMPLIANCE CONSIDERATIONS: Legal teams reviewing vendor contracts should note that this cap applies to all damages and all causes of action, including those arising from IP infringement or data handling failures. Organizations processing regulated data through Cerebras should assess whether the cap creates unacceptable risk exposure relative to their regulatory obligations.
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For businesses that have paid significant fees for API access or training services, this cap may be far lower than their actual losses from a service failure, data loss, or IP issue.
This clause substantially limits the financial compensation a user can recover from Cerebras regardless of the severity of a service failure or breach, meaning significant business losses may not be recoverable through contract claims.
ConductAtlas has identified this type of provision across 14 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Cerebras.