Updated: February 2026
Public Benefit Corporations
Public Benefit Corporations (PBCs) provide a legal structure that allows AI companies to prioritize safety and societal benefit alongside shareholder returns, creating governance frameworks designed to prevent pure profit maximization as AI systems become more powerful.
What it is:
A Public Benefit Corporation is a corporate form that legally permits, or requires, directors to balance stockholder financial interests against the best interests of those materially affected by corporate conduct. Unlike traditional private corporations bound by shareholder primacy, PBC directors receive legal protection under the business judgment rule when prioritizing mission alongside profit. For AI companies building potentially transformative systems, PBC status provides legal cover for decisions that prioritize safety over speed-to-market.
Who's working on It:
Anthropic
Anthropic incorporated as a Delaware PBC from its founding, with the stated purpose of "the responsible development and maintenance of advanced AI for the long-term benefit of humanity." In September 2023, Anthropic announced a Long-Term Benefit Trust (LTBT) that gradually gains power to elect a majority of board members through special Class T Stock. e).
OpenAI
OpenAI completed its transformation to a PBC in October 2025, restructuring as OpenAI Group PBC after pressure from California and Delaware Attorneys General concerned about the original nonprofit's assets being transferred to a for-profit entity. The nonprofit OpenAI Foundation now holds approximately 26% of equity (~$130 billion) while retaining control, with Microsoft holding 27% and employees/other investors 47%.
Harvard Law Review
April 2025
Harvard Law Review authors warned of "amoral drift" — the gradual abandonment of safety priorities — arguing that "if this process did occur, it is unlikely that organizing as a PBC would have prevented it." They also suggest that the nonprofit-controlled structure likely exacerbated the disjuncture between OpenAI’s nonprofit board and its stakeholders.
The Future of Life Institute's 2025 AI Safety Index observed that "in the years since the Delaware Public Benefit Corporation statute was enacted, there have been no reported cases of a shareholder successfully suing to protect the public benefit mission."
Real-world precedents:
Beyond AI labs, the PBC structure has been adopted by companies including Patagonia, Kickstarter, and Allbirds. The number of benefit corporations (the legal entity) and B Corps (the certification) is well into the thousands. However, the PBC model has never been tested in court regarding conflicts between safety missions and shareholder interests.
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