Glossary
Public benefit corporation
A for-profit company whose directors are required to weigh a stated public benefit alongside shareholders' interests.
A public benefit corporation is a legal form, available in Delaware and many other US states, for a for-profit company that commits in its charter to a specific public benefit. Its directors must balance that purpose, shareholders' financial interests, and the interests of people affected by the company.
Several AI developers use this structure, saying it lets them prioritize safety or other goals alongside profit.
The legal duty is to balance, not to put the public benefit first, and enforcement is limited: generally only significant shareholders can sue over it. The structure is a commitment whose strength depends on governance details.
Read more: our explainer