Delaware plans regulatory sandbox for AI companies

Delaware is planning a regulatory sandbox to test AI-operated companies as independent business entities. The proposed 30-month testing period would operate under state supervision with capital tied to liability and the ability to shut down systems. Legislators would use the resulting data to decide whether to authorize AI-run corporations.

The state’s prominence as a corporate haven makes it an attractive testing ground: about two-thirds of Fortune 500 companies incorporate in Delaware, drawn by tax advantages and business-friendly law. In 2025, the state registered 334,461 new entities. The sandbox proposal stems from a public-private partnership with Norm Ai, which develops legal AI agents for businesses. Gov. Meyer, a Democrat, publicly supported AI-based company incorporation in response to Mark Cuban’s April 2026 proposal that states could profit by enabling such incorporations using stablecoins.