Delaware is considering a 30-month regulatory sandbox for companies operated by artificial intelligence, a proposal supporters say could test new corporate structures under state oversight while giving lawmakers a record to use when developing future legislation. The plan has drawn attention because nearly two-thirds of Fortune 500 companies are incorporated in Delaware.
Citing an announcement by Patibanda-Sanchez, Comer wrote that AI-operated companies could “provide liability protection to the persons or entities capitalizing on AIC from potential harm to business partners, consumers, and the public caused by controlling AI.”
Governor Meyer’s spokesperson told Ars today that “we have received the letter and are reviewing it.” A spokeswoman for Mr. Patibanda-Sanchez declined to comment, saying the governor’s office is handling media requests on the matter.
An editorial by Patibanda Sanchez said Delaware’s planned regulatory sandbox would “combine capital with accountability and the ability to disrupt systems and test proxy transactions in broad daylight with oversight.” According to the newspaper, the 30-month test period would give state legislatures “a complete record to decide how to legislate” on AI-run companies.
Delaware is home to most Fortune 500 companies
Future legislation allowing AI-powered companies could have a particularly significant impact in Delaware, where nearly two-thirds of Fortune 500 companies are incorporated. Although Elon Musk currently prefers Texas, many companies choose Delaware because of its low corporate taxes and business-friendly legal framework.
According to Delaware’s 2025 annual report, 334,461 new corporations were formed in the state that year. Patibanda Sanchez has described Delaware as “the most predictable, business-focused legal hub in the world.”
Patibanda Sanchez said he collaborated with private companies on the sandbox project. “A framework for industry engagement with AIC is being developed in Delaware as part of a public-private partnership led by Nome Eye,” the editorial said. The piece was co-authored by Patibanda Sanchez and Nome Eye founder and CEO John Ney.
Meyer, a Democrat, publicly supported the idea of incorporating AI agents after an April 2026 social media post by Mark Cuban. Cuban wrote: “If I were a governor looking to increase revenue, I would use AI agents and stablecoins to add features that anyone can incorporate. And I would charge a premium for the service. I would put agents in marketplaces/connectors that the big LLMs have and make it easy for everyone. If you go to market first, you make a lot of money.”
Source: arstechnica.com
