Provision record
OpenAI · OpenAI Business Terms · View original document ↗

Limitation of Liability

Medium severity High confidence Explicit document language Common · 287 of 352 platforms
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Document Record

What it is

Sections 14.1 and 14.2 exclude indirect, consequential, and punitive damages for most claims and cap each party's total liability at amounts paid in the twelve months before the liability-triggering event, with exceptions for gross negligence, willful misconduct, security measure breaches, confidentiality breaches, indemnification obligations, and Customer payment obligations.

This analysis describes what OpenAI'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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

This provision establishes a mutual liability cap tied to trailing twelve-month payment amounts and excludes consequential damages for most claims, with specific carve-outs that preserve full liability for security, confidentiality, and indemnification obligations.

Clause Stability Stable

0
Changes
4
Months Monitored
May 12, 2026
First Seen
Jul 9, 2026
Last Seen
This clause type exists across 4261 other provisions on other platforms.

Change history

modified May 26, 2026

Expanded liability exclusions to explicitly include affiliates, employees, and agents; added specific exclusions for 'loss of profits or revenues' and 'loss of data, use, goodwill, or other intangible losses'; removed the specific $100 minimum cap and 12-month lookback period language (text appears truncated in current version).

View full change record →

Consumer impact (what this means for users)

The agreement caps each party's total liability at the amount Customer paid to OpenAI in the twelve months before the triggering event, and excludes indirect and consequential damages for most claims. Exceptions preserve liability exposure for gross negligence, willful misconduct, security measure breaches, confidentiality violations, and indemnification obligations.

How other platforms handle this

ActiveCampaign Medium

If you knowingly misrepresent that any activity or material on our Services is infringing, you may be liable to ActiveCampaign for certain costs and damages.

Leonardo AI Medium

A party's liability for any Liability under these Terms will be reduced proportionately to the extent the relevant Liability was caused or contributed to by the actions (or inactions) of the other party...

Netflix Medium

The Netflix service and/or some of the Netflix content may not be available at any time as a result of events beyond our reasonable control...we will not be held liable should such events occur.

See all platforms with this clause type →
▸ View Original Clause Language DOCUMENT RECORD
"
TO THE FULLEST EXTENT PERMITTED BY LAW, EXCEPT FOR: (A) A PARTY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT; (B) CUSTOMER'S BREACH OF SECTION 3.3 (RESTRICTIONS); (C) OPENAI'S BREACH OF SECTION 5.1 (SECURITY MEASURES), OR (D) EITHER PARTY'S BREACH OF SECTION 7 (CONFIDENTIALITY), NEITHER CUSTOMER NOR OPENAI OR EITHER PARTY'S AFFILIATES OR LICENSORS WILL BE LIABLE UNDER THIS AGREEMENT FOR ANY INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING LOST PROFITS, EVEN IF THE PARTY KNEW OR SHOULD HAVE KNOWN THAT SUCH DAMAGES WERE POSSIBLE AND EVEN IF A REMEDY FAILS OF ITS ESSENTIAL PURPOSE. ... EACH PARTY'S TOTAL LIABILITY UNDER THE AGREEMENT WILL NOT EXCEED THE TOTAL AMOUNT CUSTOMER PAID TO OPENAI DURING THE TWELVE MONTHS IMMEDIATELY PRIOR TO THE EVENT GIVING RISE TO LIABILITY.

Excerpt from OpenAI's Business Terms

ConductAtlas Analysis

Institutional analysis (regulatory & governance intelligence)

1.

Insight

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Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.

Applicable regulations

EU AI Act - High Risk Provisions
EU
FTC Act Section 5
United States Federal

Provision details

Document information
Document
OpenAI Business Terms
Entity
OpenAI
Document last updated
May 11, 2026
Tracking information
First tracked
July 9, 2026
Last verified
July 9, 2026
Record ID
CA-P-011630
Document ID
CA-D-00755
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
d94c426a41263f7d81583f26a9f1dc6ca88a070174a55e9238c4e7d25a8f6604
Analysis generated
July 9, 2026 03:44 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: OpenAI
Document: OpenAI Business Terms
Record ID: CA-P-011630
Captured: 2026-07-09 03:44:03 UTC
SHA-256: d94c426a41263f7d…
URL: https://conductatlas.com/platform/openai/openai-business-terms/provision/CA-P-011630/limitation-of-liability/
Accessed: Sept. 8, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does OpenAI's Limitation of Liability clause do?

This provision establishes a mutual liability cap tied to trailing twelve-month payment amounts and excludes consequential damages for most claims, with specific carve-outs that preserve full liability for security, confidentiality, and indemnification obligations.

How does this clause affect you?

The agreement caps each party's total liability at the amount Customer paid to OpenAI in the twelve months before the triggering event, and excludes indirect and consequential damages for most claims. Exceptions preserve liability exposure for gross negligence, willful misconduct, security measure breaches, confidentiality violations, and indemnification obligations.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 287 platforms. See the full comparison.

Is ConductAtlas affiliated with OpenAI?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by OpenAI.