If someone sues Cerebras because of something you did on the platform, you are responsible for paying Cerebras's legal costs and any resulting damages.
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
This clause means users bear financial responsibility not just for their own direct actions but for any third-party claim that arises from their use of the service, including potential copyright, defamation, or privacy claims triggered by AI-generated outputs.
If a third party brings a legal claim against Cerebras that is connected to your use of the platform, this clause requires you to cover Cerebras's legal defense costs and any resulting damages, which could be significant depending on the nature of the claim.
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You agree to indemnify, hold harmless and, at our option, defend us and our affiliates, and our and their officers, directors, employees, stockholders, agents and representatives, as well as Partner Bank (collectively, "Indemnified Persons"), from any and all third party claims, liability, losses, d...
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"You agree to indemnify and hold harmless Cerebras and its subsidiaries, affiliates, officers, agents, employees, partners and licensors from any claim or demand, including reasonable attorneys' fees, made by any third party due to or arising out of your use of the Service, your violation of these Terms or your violation of any rights of another.— Excerpt from Cerebras's Cerebras Terms of Service
REGULATORY LANDSCAPE: Broad user indemnification clauses are common in technology service agreements and are generally enforceable under California commercial law. However, the scope of this clause, which extends to claims arising from 'your use of the Service' broadly, means it could be triggered by outcomes related to AI-generated outputs even where the user's culpability is indirect or disputed. FTC consumer protection principles may be relevant if the clause is applied in a manner that is unfair or deceptive toward consumer users. GOVERNANCE EXPOSURE: Medium. For individual consumers the practical risk of a significant third-party claim is limited. For enterprise users generating high volumes of AI outputs for distribution or publication, the risk is more material, particularly given the unsettled IP status of AI-generated content and the potential for copyright or defamation claims. The indemnification is not limited to willful misconduct or gross negligence, which is broader than what some enterprise customers may accept. JURISDICTION FLAGS: Some jurisdictions limit the enforceability of broad indemnification clauses in consumer contracts as unfair terms. EU/EEA users may have protection under the Unfair Contract Terms Directive. In the United States, the breadth of indemnification for mere 'use of the Service' may be tested in jurisdictions where courts require a closer nexus between the indemnifying party's conduct and the underlying claim. CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams should assess whether this indemnification clause is reciprocal or one-sided and negotiate for mutual indemnification provisions. The clause as written does not cap the indemnification obligation, which means it is theoretically uncapped even though Cerebras's liability to users is capped at $100 or 12 months of fees. This asymmetry should be flagged in contract review. Legal teams should consider including an IP infringement carve-out where the claim arises from Cerebras's own platform or model outputs. COMPLIANCE CONSIDERATIONS: Organizations using AI outputs in commercial products, marketing materials, or customer-facing applications should assess the indemnification risk profile carefully. Legal teams should ensure that downstream customer contracts appropriately allocate indemnification risk and do not create conflicts with the upstream obligation to Cerebras. The absence of a cap on the indemnification obligation is a material term that should be addressed in any enterprise agreement.
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This clause means users bear financial responsibility not just for their own direct actions but for any third-party claim that arises from their use of the service, including potential copyright, defamation, or privacy claims triggered by AI-generated outputs.
If a third party brings a legal claim against Cerebras that is connected to your use of the platform, this clause requires you to cover Cerebras's legal defense costs and any resulting damages, which could be significant depending on the nature of the claim.
ConductAtlas has identified this type of provision across 71 platforms. See the full comparison.
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