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SaaSGuard Risk Report
Stability AI
stability.ai
Generated May 4, 2026
Grade D
Score: 43 / 100
Executive summary
We analyzed Stability AI’s Terms of Service across 8 risk dimensions and found 11 flagged clauses across 7 categories.
Flagged clauses by category
AI training on your data (2)
Severity 5 · egregious
“As described in our Privacy Policy, we may use Inputs and Outputs to improve and develop our Services (but you can opt-out to prevent us from using your Inputs and Outputs to train our models, learn more), comply with applicable law, enforce our terms and policies, and to keep our Services safe.”
Stability AI can use your prompts and the images it generates to improve its services, but you can opt-out of them using your data for model training.
Your prompts and generated images could be used to train AI models that compete with you, unless you actively opt-out.
Matches The New York Times Co. v. OpenAI & Microsoft (2023)
Severity 4 · material
“When you use our Services, you may not use any Outputs to train a model that competes with that third party (see, e.g., OpenAI terms).”
Stability AI prohibits you from using its generated images to train AI models that compete with them.
You could face legal action if you use Stability AI's outputs to train a competing AI model.
Matches The New York Times Co. v. OpenAI & Microsoft (2023)
Auto-renewal traps (1)
Severity 3 · notable
“If you sign up for a paid subscription, we will automatically charge your payment method on each agreed-upon periodic renewal date until you cancel.”
Stability AI will automatically charge your payment method for your subscription on each renewal date until you cancel.
You will be automatically charged for continued service unless you actively cancel before the renewal date.
Matches FTC v. Amazon (Iliad Flow / Prime Enrollment) (2023)
Surprise price hikes (1)
Severity 3 · notable
“We have the right to make changes to the fees applicable to your subscription from time to time, with advance notice. You agree to pay the increase in fees for Services you receive after receiving notice of the increase, unless you cancel the subscription before the renewal term to which the increase in fees will apply.”
Stability AI can change the price of your subscription with advance notice, and you'll pay the new price unless you cancel before the renewal.
You could be charged more for your subscription if you don't cancel before the renewal date after receiving notice of a price increase.
Matches FTC v. MoviePass / Helios and Matheson Analytics (2021)
Termination friction (1)
Severity 3 · notable
“If we terminate your access to our Services due to a violation of these Terms and you have a subscription, you will not be entitled to any refund (unless required by applicable law). We may also terminate your account if you have been inactive for over a year. We may also delete any Inputs, Outputs, or other data associated with your account.”
Stability AI will not give you a refund if they terminate your account for violating terms, and they can delete your data if your account is inactive for a year.
You could lose access to your data and any paid subscription without a refund if you violate the terms or become inactive.
Matches Bungie / Destiny 2 Account Termination Litigation (2023)
Liability caps (3)
Severity 4 · material
“TO THE EXTENT PERMISSIBLE UNDER APPLICABLE LAW, THE STABILITY PARTIES’ TOTAL AGGREGATE LIABILITY TO YOU FOR ALL DAMAGES, LOSSES AND CAUSES OF ACTION ARISING OUT OF OR RELATED TO OUR SERVICES, THE INPUTS / OUTPUTS, OR THESE TERMS, WHETHER IN CONTRACT, TORT, NEGLIGENCE, OR OTHER, WILL NOT EXCEED THE GREATER OF $100 OR THE AMOUNT YOU PAID FOR ACCESSING OUR SERVICES IN THE SIX MONTHS BEFORE THE DATE SUCH DAMAGES, LOSSES, AND CAUSES OF ACTION FIRST AROSE.”
Stability AI's total liability to you is capped at $100 or the amount you paid in the last six months, whichever is greater.
If Stability AI causes significant damages, your recovery is limited to a small amount, regardless of your actual losses.
Matches Capital One Data Breach Class Action — settled for $190M (2022)
Severity 4 · material
“OUR SERVICES ARE PROVIDED “AS IS” AND, TO THE EXTENT PERMISSIBLE UNDER APPLICABLE LAW, WITHOUT WARRANTIES, (WHETHER EXPRESS, IMPLIED, OR STATUTORY). WE AND OUR PROVIDERS EXPRESSLY DISCLAIM ALL WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, TITLE, MERCHANTABILITY, ACCURACY, SATISFACTORY QUALITY, AVAILABILITY, RELIABILITY, QUIET ENJOYMENT, SECURITY, PRIVACY, COMPATIBILITY, NON-INFRINGEMENT, AND ANY WARRANTY IMPLIED BY COURSE OF DEALING, COURSE OF PERFORMANCE, OR TRADE USAGE.”
Stability AI provides its services without any warranties, meaning they are not responsible if the service doesn't work as expected.
You have no recourse if the service fails to perform its basic functions or meet your needs.
Matches Capital One Data Breach Class Action — settled for $190M (2022)
Severity 4 · material
“WE DO NOT WARRANT THAT ANY INPUT OR OUTPUT WILL BE SECURE OR NOT LOST OR ALTERED. YOUR USE OF OUR SERVICES AND INPUTS / OUTPUTS IS SOLELY AT YOUR OWN RISK. TO THE EXTENT PERMISSIBLE UNDER APPLICABLE LAW, OUR PROVIDERS, OR OUR OR THEIR RESPECTIVE AFFILIATES, INVESTORS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SUCCESSORS OR ASSIGNS (COLLECTIVELY, THE “STABILITY PARTIES”) WILL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR OTHER DAMAGES ARISING OUT OF OR RELATED TO OUR SERVICES, THE INPUTS / OUTPUTS, OR THESE TERMS, WHETHER BASED IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY, OR OTHER THEORY, EVEN IF THE DAMAGES ARE FORESEEABLE.”
Stability AI is not liable for any damages arising from your use of their services or the generated content.
You bear all the risk if the service or its outputs cause any problems, financial or otherwise.
Matches Capital One Data Breach Class Action — settled for $190M (2022)
Indemnification (1)
Severity 4 · material
“YOU AGREE TO INDEMNIFY, DEFEND, AND HOLD THE STABILITY PARTIES HARMLESS AGAINST ANY LIABILITIES, DAMAGES, AND COSTS (INCLUDING REASONABLE ATTORNEYS’ FEES) ARISING OUT OF OR RELATING TO: (A) YOUR USE OF OUR SERVICES; (B) ANY BREACH OR VIOLATION OF THESE TERMS (INCLUDING OUR ACCEPTABLE USE POLICY); (C) ANY PRODUCTS OR SERVICES (INCLUDING FINE-TUNES) THAT YOU MAKE AVAILABLE USING OR IN CONNECTION WITH OUR SERVICES; OR (D) INPUTS, OUTPUTS, OR OTHER DATA PROVIDED OR GENERATED BY YOU.”
You must defend Stability AI against any claims arising from your use of their services, your content, or any products you create with them.
You could be responsible for legal fees and damages if your use of Stability AI's service leads to a lawsuit.
Matches T-Mobile Data Breach Settlement — settled for $350M (2022)
Right to silently change terms (2)
Severity 4 · material
“We may periodically update our Services, including add or remove features or Services, without advance notice. Unless we specifically agree otherwise in a separate agreement, we reserve the right to modify or discontinue our Services in our discretion and without advance notice. We will not be liable for any changes to our Services.”
Stability AI can change or remove features from its services at any time without notice.
Key features you rely on could disappear without warning, disrupting your workflow.
Matches X Corp. Verified User Class Action (2024)
Severity 4 · material
“We may update these Terms at our discretion, including to reflect changes in our Services, for security or legal reasons, or to prevent abuse. We will provide notice of updates in accordance with applicable law. If you continue to access our Services after we provide such notice, then you agree to the updated Terms. You must stop using our Services if you do not accept the updated Terms.”
Stability AI can update its terms of service at any time, and continuing to use the service means you accept the new terms.
You may be bound by new terms you haven't reviewed or agreed to, simply by continuing to use the service.
Matches Italian DPA (Garante) v. WhatsApp — settled for $6M (2022)
Methodology
SaaSGuard uses an automated pipeline: a daily Playwright crawler captures each vendor’s public Terms of Service, Privacy Policy, and DPA. Google’s Gemini 2.5 Flash classifies each clause into one of 8 risk categories with a severity score (1–5). Clauses are cross-referenced against a curated database of real lawsuits and FTC actions via embedding-based similarity matching. Grades are computed from per-category max severity; full source code is available on request.