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The agreement states that NVIDIA does not certify its Software for Critical Applications, disclaims liability for any claims or damages arising from such uses, and places sole responsibility on Customer to ensure safety, redundancy, and regulatory compliance for any systems built with the Software.
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 allocates liability for Critical Application deployments entirely to Customer, which has significant operational and legal implications for enterprise customers deploying NVIDIA Software in safety-critical contexts such as autonomous vehicles, medical devices, or industrial control systems.
Interpretive note: The definition of Critical Applications is referenced but not reproduced in the provided document text; the operative scope of this provision depends on that definition. Enforceability of the liability disclaimer may also vary by jurisdiction and regulatory context.
Under this clause, Customer bears sole responsibility for the safety, redundancy, and regulatory compliance of any systems developed or deployed with NVIDIA Software in Critical Applications, and NVIDIA disclaims liability for any resulting claims or damages.
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"Customer acknowledges that the Software as delivered under the Agreement is not tested or certified by NVIDIA for use in any Critical Application. Beyond NVIDIA delivering the Software in accordance with the Agreement, NVIDIA will not be liable to Customer or any third party, in whole or in part, for any claims or damages arising from such uses. Customer is solely responsible for ensuring that systems and applications developed or deployed with the Software include sufficient safety and redundancy features and comply with all applicable legal and regulatory standards and requirements.Excerpt from NVIDIA NIM's Terms of Use
1) REGULATORY LANDSCAPE: This provision engages sector-specific safety and liability frameworks including EU product liability law, the EU AI Act's requirements for high-risk AI systems, FDA regulations for software as a medical device, NHTSA requirements for automotive safety systems, and IEC functional safety standards. The extent to which a contractual liability disclaimer is enforceable against third-party claims in safety-critical deployments varies significantly by jurisdiction and regulatory framework. 2) GOVERNANCE EXPOSURE: High. Enterprise customers deploying NVIDIA Software in autonomous vehicle systems, medical AI, industrial control, or other safety-critical contexts assume full regulatory and liability exposure under this clause. The disclaimer of NVIDIA liability does not reduce the Customer's obligations to third parties or regulators, and applicable mandatory law may render portions of this disclaimer unenforceable in certain jurisdictions. 3) JURISDICTION FLAGS: EU product liability law and the EU AI Act impose non-waivable obligations on deployers of high-risk AI systems that may limit the enforceability of a contractual liability disclaimer. In the U.S., product liability law in states with strict liability standards for safety-critical applications may similarly constrain the operative scope of this disclaimer. Healthcare and automotive regulatory frameworks impose independent compliance obligations regardless of contractual allocation. 4) CONTRACT AND VENDOR IMPLICATIONS: Procurement teams acquiring NVIDIA Software for safety-critical deployments should assess the adequacy of Customer-side indemnification provisions, insurance coverage, and regulatory certification processes. The agreement does not define Critical Applications in the excerpt provided, so the operative scope of this clause requires review of the definition section. 5) COMPLIANCE CONSIDERATIONS: Legal teams should assess whether planned deployment contexts qualify as Critical Applications under the agreement's definition, and whether the Customer's safety and redundancy frameworks are sufficient to meet applicable regulatory standards in the relevant jurisdiction and sector. Regulatory counsel familiar with the EU AI Act, FDA SaMD guidance, or applicable automotive safety standards should review deployment plans before go-live.
This provision allocates liability for Critical Application deployments entirely to Customer, which has significant operational and legal implications for enterprise customers deploying NVIDIA Software in safety-critical contexts such as autonomous vehicles, medical devices, or industrial control systems.
Under this clause, Customer bears sole responsibility for the safety, redundancy, and regulatory compliance of any systems developed or deployed with NVIDIA Software in Critical Applications, and NVIDIA disclaims liability for any resulting claims or damages.
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