Risk Score
0 = very fair · 100 = very risky
Summary
This is OpenAI's Terms of Use (effective January 1, 2026) governing individual use of ChatGPT, DALL·E, and related services. The document is moderately balanced for a major AI platform: users retain ownership of their inputs and outputs, and there is an opt-out for model training. However, it contains mandatory arbitration with a class action waiver, broad unilateral modification rights, non-refundable payments, and a liability cap of just $100 or the amount paid. Overall it leans in OpenAI's favor on dispute resolution and liability, but is more user-friendly than average on content ownership.
Flagged Clauses
By default, you cannot sue OpenAI in regular court or join a class action lawsuit. Disputes go to a private arbitrator instead. You have a 30-day window from account creation (or from any update) to opt out of this clause by submitting a form.
“YOU AND OPENAI AGREE TO THE FOLLOWING MANDATORY ARBITRATION AND CLASS ACTION WAIVER PROVISIONS... You and OpenAI agree to resolve any claims... through final and binding arbitration.”
Even in cases that do end up in court (e.g., enforceability disputes), you permanently give up the right to a jury trial.
“You and OpenAI knowingly and irrevocably waive any right to trial by jury in any action, proceeding, or counterclaim.”
The maximum OpenAI would ever owe you for any harm is either what you paid them in the past year or $100, whichever is higher. For free-tier users, that cap is just $100 regardless of the damage caused.
“OUR AGGREGATE LIABILITY UNDER THESE TERMS WILL NOT EXCEED THE GREATER OF THE AMOUNT YOU PAID FOR THE SERVICE THAT GAVE RISE TO THE CLAIM DURING THE 12 MONTHS BEFORE THE LIABILITY AROSE OR ONE HUNDRED DOLLARS ($100).”
OpenAI disclaims liability for a very broad range of potential harms, including lost data, lost profits, and many other consequential damages, even if they knew the harm was possible.
“NEITHER WE NOR ANY OF OUR AFFILIATES OR LICENSORS WILL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR EXEMPLARY DAMAGES, INCLUDING DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, OR DATA OR OTHER LOSSES.”
OpenAI can change terms at any time. Only 'materially adverse' changes require 30 days' notice; other changes take effect immediately upon posting. If you keep using the service after changes, you're considered to have agreed.
“We will give you at least 30 days advance notice of changes to these Terms that materially adversely impact you... All other changes will be effective as soon as we post them to our website.”
By default, OpenAI can use everything you type into the service (inputs and outputs) to improve their AI models. You can opt out of model training, but that option must be actively enabled by the user.
“We may use Content to provide, maintain, develop, and improve our Services, comply with applicable law, enforce our terms and policies, and keep our Services safe.”
There is an opt-out available for model training, but it is not automatic — you must take action to enable it. Opting out may limit some service personalization.
“If you do not want us to use your Content to train our models, you can opt out by following the instructions in this article.”
OpenAI explicitly says you own what you put in and what comes out. This is more user-friendly than many competitors. Note the qualifier 'to the extent permitted by applicable law,' which may vary by jurisdiction.
“As between you and OpenAI, and to the extent permitted by applicable law, you (a) retain your ownership rights in Input and (b) own the Output. We hereby assign to you all our right, title, and interest, if any, in and to Output.”
Even though you 'own' your output, other users may receive identical or very similar output. This could create practical challenges if you try to claim exclusive copyright over AI-generated content.
“Due to the nature of our Services and artificial intelligence generally, output may not be unique and other users may receive similar output from our Services. Our assignment above does not extend to other users' output or any Third Party Output.”
Any feedback, suggestions, or ideas you give OpenAI become theirs to use freely, permanently, and without paying you anything.
“We appreciate your feedback, and you agree that we may use it without restriction or compensation to you.”
OpenAI can suspend or delete your account for a broad and somewhat subjective set of reasons, including vague 'risk or harm' to OpenAI itself. There is an appeals process, but the initial determination is OpenAI's alone.
“We reserve the right to suspend or terminate your access to our Services or delete your account if we determine: You breached these Terms or our Usage Policies. We must do so to comply with the law. Your use of our Services could cause risk or harm to OpenAI, our users, or anyone else.”
Free accounts inactive for more than a year can be deleted, but OpenAI says it will warn you beforehand.
“We also may terminate your account if it has been inactive for over a year and you do not have a paid account. If we do, we will provide you with advance notice.”
Subscription payments are generally not refunded. Your legal rights in your country may provide exceptions (e.g., EU/UK cooling-off periods), but you would need to invoke those separately.
“Payments are non-refundable, except where required by law. These Terms do not override any mandatory local laws regarding your cancellation rights.”
Paid plans automatically renew and charge your card. You need to actively cancel to stop being billed. OpenAI does commit to 30 days' notice before any price increases.
“For paid subscriptions, we will automatically charge your payment method on each agreed-upon periodic renewal until you cancel.”
Cancellation is allowed at any time, which is a user-friendly provision, though payments already made are non-refundable.
“You can cancel your paid subscription at any time.”
Business and organizational users can be required to pay OpenAI's legal costs if a third party sues OpenAI over something the business user did. This clause does not apply to individual (non-business) users.
“If you are a business or organization, to the extent permitted by law, you will indemnify and hold harmless us, our affiliates, and our personnel, from and against any costs, losses, liabilities, and expenses (including attorneys' fees) from third party claims arising out of or relating to your use of the Services and Content or any violation of these Terms.”
OpenAI makes no guarantees about the service working correctly, being available, or keeping your data safe from loss or alteration. All risk of using AI-generated content is placed on the user.
“OUR SERVICES ARE PROVIDED 'AS IS.' ...WE DO NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED, ACCURATE OR ERROR FREE, OR THAT ANY CONTENT WILL BE SECURE OR NOT LOST OR ALTERED.”
Missing Protections
- No explicit data retention or deletion timeline specified in the Terms (Privacy Policy is referenced but not incorporated)
- No service level agreement (SLA) or uptime commitment for paid subscribers
- No explicit process for what happens to stored conversations or data upon account deletion
- No explicit right to data portability (export your data) mentioned in these Terms
- No transparency about what constitutes a 'material' change to Terms — determination is left entirely to OpenAI
- No independent dispute resolution option for smaller claims without requiring full arbitration process
- No explicit commitment on how long advance notice is given before account termination (beyond inactive account scenario)
Fair Terms
- Users explicitly own both their inputs and the AI-generated outputs, with OpenAI formally assigning any rights it holds in outputs back to the user
- Opt-out mechanism available for model training using user content (though it must be actively enabled)
- At least 30 days' notice required before any price increases, with the increase only taking effect at next renewal
- Arbitration opt-out is available within 30 days of account creation or of any arbitration term update
- OpenAI commits to a refund of prepaid/unused services if it discontinues the service
- OpenAI states it will not seek attorneys' fees in arbitration unless the arbitrator finds the claim frivolous
- Account termination for inactivity requires advance notice before deletion
- Appeals process exists for account suspension or termination decisions
- Price increase notice of at least 30 days is provided, giving users time to cancel before being charged more
Document information only — not legal advice.