NVIDIA provides the software without any guarantees about its quality, fitness for purpose, or that it does not infringe on others' intellectual property rights.
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 provides no warranty that the software will function as expected, be fit for any particular enterprise purpose, or be free of IP infringement claims, transferring all performance and IP risk to the licensee.
Organizations deploying NIM bear full risk for software performance, fitness for purpose, and any third-party IP infringement claims, as NVIDIA disclaims all express and implied warranties under this provision.
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"THE SOFTWARE IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. NVIDIA EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.— Excerpt from NVIDIA NIM's NVIDIA NIM Terms of Use
REGULATORY LANDSCAPE: Warranty disclaimers in commercial software agreements are generally enforceable under U.S. UCC Article 2 and common law contract principles, subject to any mandatory implied warranty obligations under applicable state law. EU consumer protection frameworks and the EU Sale of Goods Directive impose non-waivable conformity guarantees in B2C contexts, though enterprise B2B agreements typically have more flexibility. The non-infringement disclaimer is particularly significant given the ongoing landscape of AI training data and model IP litigation. GOVERNANCE EXPOSURE: Medium. The non-infringement disclaimer is material in the current AI IP litigation environment, where training data provenance and model output IP status are actively contested. Organizations deploying NIM in commercial products that incorporate model outputs should assess their exposure to downstream IP claims that NVIDIA has disclaimed responsibility for. JURISDICTION FLAGS: EU B2C contexts may limit the enforceability of warranty disclaimers under the Sale of Goods Directive. UK consumer rights law similarly preserves implied fitness-for-purpose warranties in consumer contexts. U.S. state law may impose mandatory implied warranty floors in certain commercial contexts. CONTRACT AND VENDOR IMPLICATIONS: Procurement teams should assess whether the full warranty disclaimer is compatible with downstream contractual warranties the organization provides to its customers. If the organization provides uptime or performance guarantees to customers for NIM-based services, it must absorb performance risk that NVIDIA has disclaimed. IP indemnification coverage should be assessed as a risk mitigation measure given the non-infringement disclaimer. COMPLIANCE CONSIDERATIONS: Legal teams should review whether the full warranty disclaimer is enforceable in applicable jurisdictions and assess residual IP and performance risk exposure. Organizations should consider whether cyber liability or professional indemnity insurance covers risks arising from the no-warranty deployment of AI inference software. Contract reviews should document reliance on disclaimed warranties as an accepted risk.
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The agreement provides no warranty that the software will function as expected, be fit for any particular enterprise purpose, or be free of IP infringement claims, transferring all performance and IP risk to the licensee.
Organizations deploying NIM bear full risk for software performance, fitness for purpose, and any third-party IP infringement claims, as NVIDIA disclaims all express and implied warranties under this provision.
ConductAtlas has identified this type of provision across 1 platforms. See the full comparison.
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