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TAO Toolkit may collect installed application version data, performance data, invocation data, and usage data for product optimization and improvement; for NVIDIA AI Enterprise-qualified releases, telemetry is disabled by default, while other releases may have telemetry enabled by default with an opt-out available via environment variable.
This analysis describes what NVIDIA NIM'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 discloses a split default state for TAO Toolkit telemetry: NVIDIA AI Enterprise-qualified releases have collection disabled by default, while other releases may have it enabled, creating an obligation for customers to identify which category each deployment falls into and configure opt-out settings accordingly.
Interpretive note: The document does not provide a definitive list of which TAO Toolkit releases qualify as NVIDIA AI Enterprise Products, requiring customers to consult external documentation to determine the default telemetry state for each release.
The agreement establishes that for TAO Toolkit releases qualifying as NVIDIA AI Enterprise Products, telemetry collection is disabled by default; for other TAO Toolkit releases, customers must set the TELEMETRY_OPT_OUT environment variable to prevent collection of installed application versions, performance, invocation, and usage data.
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"Customer acknowledges that TAO Toolkit releases that collect data, collect it for the following purposes: (a) to properly configure and optimize products for use with Software; (b) to deliver content or service through the Software; and (c) to improve NVIDIA products and services. When enabled, telemetry information collected includes: (i) installed application versions used with Software, and (ii) performance, invocation and usage data. For Tao Toolkit releases that qualify as NVIDIA AI Enterprise Products, telemetry collection is disabled by default. For releases where telemetry is enabled by default, Customer can disable telemetry collection by setting the TELEMETRY_OPT_OUT environment variable or configuring telemetry opt-out parameters in deployment configurations.Excerpt from NVIDIA NIM's NVIDIA AI Foundation Models AUP
(1) REGULATORY LANDSCAPE: The collection of performance, invocation, and usage data from TAO Toolkit deployments may constitute processing of operational data that engages GDPR transparency and data minimization principles for EU/EEA customers. Where invocation data can be linked to identifiable user sessions or individuals, GDPR Article 6 lawful basis requirements apply. CCPA disclosure obligations are relevant for California-based enterprise customers. (2) GOVERNANCE EXPOSURE: Medium. The split default state between AI Enterprise and non-AI Enterprise TAO Toolkit releases creates a compliance burden for customers managing multiple TAO Toolkit versions, as they must determine the default telemetry posture for each release in use. The inclusion of 'invocation data' as a telemetry category is operationally notable, as it may reveal information about the frequency and nature of model or API calls. (3) JURISDICTION FLAGS: EU/EEA customers should evaluate whether any telemetry data flows from TAO Toolkit to NVIDIA outside the EEA require a valid transfer mechanism under GDPR Chapter V. Customers in regulated industries (healthcare, financial services) should additionally evaluate whether usage or invocation data constitutes sensitive operational data subject to sector-specific controls. (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams should confirm the telemetry default status for each TAO Toolkit release in their environment and document opt-out configurations. Data processing agreements with NVIDIA should be reviewed to confirm they cover TAO Toolkit telemetry data flows. (5) COMPLIANCE CONSIDERATIONS: Compliance teams should create an inventory of TAO Toolkit releases in use, identify which qualify as NVIDIA AI Enterprise Products (and are thus disabled by default), and confirm TELEMETRY_OPT_OUT has been set for all non-AI Enterprise releases where data collection is not authorized. Privacy notices and data maps should be updated to reflect these telemetry flows.
This provision discloses a split default state for TAO Toolkit telemetry: NVIDIA AI Enterprise-qualified releases have collection disabled by default, while other releases may have it enabled, creating an obligation for customers to identify which category each deployment falls into and configure opt-out settings accordingly.
The agreement establishes that for TAO Toolkit releases qualifying as NVIDIA AI Enterprise Products, telemetry collection is disabled by default; for other TAO Toolkit releases, customers must set the TELEMETRY_OPT_OUT environment variable to prevent collection of installed application versions, performance, invocation, and usage data.
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