Stability AI limits its legal responsibility for losses you experience from using its services, excluding indirect and consequential damages such as lost profits or data, to the maximum extent allowed by law.
This analysis describes what Stability AI'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 clause limits the scope of recoverable damages in disputes to exclude categories of loss that would otherwise be available under general liability principles, thereby defining the financial exposure the service provider assumes for service failures or disruptions.
Interpretive note: The enforceability of this limitation against consumers varies by jurisdiction; EU and UK statutory rights may override the contractual exclusion in part or in full.
Under this provision, users cannot recover from Stability AI for indirect losses such as lost profits, lost data, or loss of goodwill arising from service failures or AI output issues, to the extent permitted by applicable law in the user's jurisdiction.
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In no event will either party's aggregate liability arising out of or related to this Agreement exceed the total fees paid or payable by Customer in the twelve (12) months preceding the claim. In no event will either party be liable for any indirect, incidental, special, consequential, or punitive d...
IN NO EVENT WILL DEEPSEEK OR ITS AFFILIATES BE LIABLE UNDER ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, TORT, NEGLIGENCE, PRODUCTS LIABILITY, OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES OR LOST PROFITS, EVEN IF DEEPSEEK OR ITS AFFILIATES HAVE ...
TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL PERPLEXITY, ITS AFFILIATES, LICENSORS, SERVICE PROVIDERS, EMPLOYEES, AGENTS, OFFICERS, OR DIRECTORS BE LIABLE FOR ANY INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS O...
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"To the maximum extent permitted by applicable law, in no event shall Stability AI, its directors, employees, partners, agents, suppliers, or affiliates, be liable for any indirect, incidental, special, consequential or punitive damages, including without limitation, loss of profits, data, use, goodwill, or other intangible losses, resulting from your access to or use of (or inability to access or use) the Services.— Excerpt from Stability AI's Stability AI Terms of Service
1. REGULATORY LANDSCAPE: Limitation of liability clauses in consumer contracts may require evaluation under EU Directive 93/13/EEC and the UK Consumer Rights Act 2015, which may limit the enforceability of such clauses against consumers. In the US, limitation of liability clauses in commercial contracts are generally enforceable subject to unconscionability standards and jurisdiction-specific consumer protection statutes. The qualifier 'to the maximum extent permitted by applicable law' acknowledges that statutory consumer rights may override this limitation in some jurisdictions. 2. GOVERNANCE EXPOSURE: Medium. The broad exclusion of indirect and consequential damages is standard in technology service agreements but is operationally significant for enterprise users who rely on Stability AI for business-critical functions. The absence of a financial liability cap stated in absolute terms (such as a multiple of fees paid) leaves the residual scope of liability unclear. 3. JURISDICTION FLAGS: EU and UK consumers retain statutory rights that may not be waivable by contract, meaning this limitation may not be fully enforceable against consumers in those jurisdictions. California and other US states have consumer protection statutes that may limit the scope of liability exclusions. Enterprise users should assess whether the liability limitation is consistent with their own customer-facing service commitments. 4. CONTRACT AND VENDOR IMPLICATIONS: Procurement and legal teams should confirm whether enterprise agreements include a specified financial liability cap and whether the limitation of liability clause is modified for business customers. The absence of carve-outs for gross negligence or willful misconduct is a commercially material omission that procurement teams should address in contract negotiations. 5. COMPLIANCE CONSIDERATIONS: Organizations relying on Stability AI for regulated activities should assess whether the liability limitation is compatible with their own regulatory obligations, particularly in sectors such as financial services, healthcare, or legal services where output accuracy is material. Vendor risk assessments should document the liability exposure created by this clause.
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The clause limits the scope of recoverable damages in disputes to exclude categories of loss that would otherwise be available under general liability principles, thereby defining the financial exposure the service provider assumes for service failures or disruptions.
Under this provision, users cannot recover from Stability AI for indirect losses such as lost profits, lost data, or loss of goodwill arising from service failures or AI output issues, to the extent permitted by applicable law in the user's jurisdiction.
ConductAtlas has identified this type of provision across 227 platforms. See the full comparison.
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