NVIDIA limits its financial liability to you by excluding responsibility for indirect or consequential damages, such as lost profits, lost data, or business disruption, even if NVIDIA was aware such harm was possible.
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
The agreement excludes a broad range of damage categories that are often the most significant in enterprise AI deployment failures, including lost profits, data loss, and business interruption, which limits the practical financial recourse available to licensees.
Interpretive note: Enforceability of the consequential damages exclusion depends on jurisdiction; EU, UK, and certain U.S. state laws may limit or override contractual liability caps in specific contexts.
If NVIDIA software fails or causes harm in an enterprise deployment, the licensee's ability to recover damages for lost revenue, data loss, or business disruption is excluded by this provision, subject to applicable law limitations on such exclusions.
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"TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL NVIDIA BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR DAMAGES FOR LOSS OF PROFITS, REVENUE, DATA, BUSINESS, OR GOODWILL, EVEN IF NVIDIA HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.— Excerpt from NVIDIA NIM's NVIDIA NIM Terms of Use
REGULATORY LANDSCAPE: Liability limitation clauses in enterprise software agreements are subject to applicable law constraints. In the EU, the Unfair Contract Terms Directive and national consumer protection laws may limit the enforceability of broad liability exclusions, particularly in B2C contexts. The EU AI Act may impose non-waivable liability obligations on providers of high-risk AI systems. In the UK, the Unfair Contract Terms Act 1977 limits exclusions of liability for negligence and breach of contract. U.S. enforceability depends on state law and the commercial context. GOVERNANCE EXPOSURE: Medium. The exclusion of consequential damages is standard in enterprise software agreements but creates material exposure for organizations deploying NIM in mission-critical or regulated contexts where AI inference failures could result in significant business harm. The breadth of the exclusion, covering data loss and business disruption, may be particularly material for healthcare, financial services, or critical infrastructure deployments. JURISDICTION FLAGS: EU and UK jurisdictions impose statutory limits on liability exclusion enforceability that may override contractual terms. California's commercial law may constrain the enforceability of certain liability caps. Organizations in regulated industries may have sector-specific obligations that cannot be waived through contractual liability limitation. CONTRACT AND VENDOR IMPLICATIONS: Procurement teams should assess whether the liability cap and damage exclusions are compatible with the organization's risk profile and downstream contractual obligations. Organizations with customers who depend on NIM-based services should ensure they do not assume liability to downstream parties that they cannot recover upstream from NVIDIA. COMPLIANCE CONSIDERATIONS: Legal teams should assess jurisdiction-specific enforceability of the liability exclusion, particularly in EU, UK, and California contexts. Organizations in regulated industries should evaluate whether applicable sector regulations impose non-waivable liability or indemnification obligations that this clause cannot override. Risk management teams should factor the liability exclusion into their assessment of acceptable deployment contexts for NIM.
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The agreement excludes a broad range of damage categories that are often the most significant in enterprise AI deployment failures, including lost profits, data loss, and business interruption, which limits the practical financial recourse available to licensees.
If NVIDIA software fails or causes harm in an enterprise deployment, the licensee's ability to recover damages for lost revenue, data loss, or business disruption is excluded by this provision, subject to applicable law limitations on such exclusions.
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