diff --git a/apps/web/src/components/game/CompanyStatsCard.tsx b/apps/web/src/components/game/CompanyStatsCard.tsx
new file mode 100644
index 0000000..c7333cf
--- /dev/null
+++ b/apps/web/src/components/game/CompanyStatsCard.tsx
@@ -0,0 +1,65 @@
+import { useGameStore } from '@/store';
+import { formatMoney, formatNumber, formatPercent } from '@ai-tycoon/shared';
+import { Share2, Copy, Check } from 'lucide-react';
+import { useState } from 'react';
+import { ACHIEVEMENT_DEFINITIONS } from '@ai-tycoon/game-engine';
+
+export function CompanyStatsCard({ onClose }: { onClose: () => void }) {
+  const [copied, setCopied] = useState(false);
+  const companyName = useGameStore((s) => s.meta.companyName);
+  const era = useGameStore((s) => s.meta.currentEra);
+  const totalPlayTime = useGameStore((s) => s.meta.totalPlayTime);
+  const money = useGameStore((s) => s.economy.money);
+  const totalRevenue = useGameStore((s) => s.economy.totalRevenue);
+  const valuation = useGameStore((s) => s.economy.funding.valuation);
+  const subscribers = useGameStore((s) => s.market.consumers.totalSubscribers);
+  const models = useGameStore((s) => s.models.trainedModels.length);
+  const bestModel = useGameStore((s) =>
+    s.models.trainedModels.reduce((best, m) => Math.max(best, m.benchmarkScore), 0),
+  );
+  const reputation = useGameStore((s) => s.reputation.score);
+  const achievements = useGameStore((s) => s.achievements.unlocked.length);
+  const dataCenters = useGameStore((s) => s.infrastructure.dataCenters.length);
+
+  const eraLabel = era === 'startup' ? 'Startup' : era === 'scaleup' ? 'Scale-up' : era === 'bigtech' ? 'Big Tech' : 'AGI';
+  const hours = Math.floor(totalPlayTime / 3600);
+  const minutes = Math.floor((totalPlayTime % 3600) / 60);
+
+  const statsText = [
+    `${companyName} — AI Tycoon`,
+    `Era: ${eraLabel} | Playtime: ${hours}h ${minutes}m`,
+    `Cash: ${formatMoney(money)} | Revenue: ${formatMoney(totalRevenue)}`,
+    `Valuation: ${formatMoney(valuation)}`,
+    `Subscribers: ${formatNumber(subscribers)} | Models: ${models}`,
+    `Best Model: ${bestModel.toFixed(1)}/100 | Reputation: ${reputation}/100`,
+    `Data Centers: ${dataCenters} | Achievements: ${achievements}/${ACHIEVEMENT_DEFINITIONS.length}`,
+  ].join('\n');
+
+  const handleCopy = () => {
+    navigator.clipboard.writeText(statsText);
+    setCopied(true);
+    setTimeout(() => setCopied(false), 2000);
+  };
+
+  return (
+    <div className="fixed inset-0 bg-black/60 flex items-center justify-center z-50" onClick={onClose}>
+      <div className="bg-surface-900 border border-surface-700 rounded-xl p-6 max-w-md w-full mx-4 shadow-2xl" onClick={e => e.stopPropagation()}>
+        <div className="flex items-center justify-between mb-4">
+          <h3 className="text-lg font-bold flex items-center gap-2"><Share2 size={18} /> Company Stats</h3>
+          <button onClick={onClose} className="text-surface-400 hover:text-surface-200 text-sm">Close</button>
+        </div>
+
+        <div className="bg-surface-800 rounded-lg p-4 font-mono text-xs leading-relaxed whitespace-pre-line text-surface-200">
+          {statsText}
+        </div>
+
+        <button
+          onClick={handleCopy}
+          className="mt-4 w-full flex items-center justify-center gap-2 bg-accent hover:bg-accent-dark text-white rounded-lg py-2 text-sm font-medium"
+        >
+          {copied ? <><Check size={14} /> Copied!</> : <><Copy size={14} /> Copy to Clipboard</>}
+        </button>
+      </div>
+    </div>
+  );
+}
diff --git a/apps/web/src/components/layout/MainLayout.tsx b/apps/web/src/components/layout/MainLayout.tsx
index c4eaa25..7b36633 100644
--- a/apps/web/src/components/layout/MainLayout.tsx
+++ b/apps/web/src/components/layout/MainLayout.tsx
@@ -14,6 +14,7 @@ import { TalentPage } from '@/pages/TalentPage';
 import { DataPage } from '@/pages/DataPage';
 import { CompetitorsPage } from '@/pages/CompetitorsPage';
 import { AchievementsPage } from '@/pages/AchievementsPage';
+import { LeaderboardPage } from '@/pages/LeaderboardPage';
 
 export function MainLayout() {
   const activePage = useGameStore((s) => s.activePage);
@@ -45,6 +46,7 @@ function PageRouter({ page }: { page: string }) {
     case 'data': return <DataPage />;
     case 'competitors': return <CompetitorsPage />;
     case 'achievements': return <AchievementsPage />;
+    case 'leaderboard': return <LeaderboardPage />;
     case 'settings': return <SettingsPage />;
     default: return <PlaceholderPage name={page} />;
   }
diff --git a/apps/web/src/components/layout/Sidebar.tsx b/apps/web/src/components/layout/Sidebar.tsx
index ec06cb0..3550c4e 100644
--- a/apps/web/src/components/layout/Sidebar.tsx
+++ b/apps/web/src/components/layout/Sidebar.tsx
@@ -1,7 +1,7 @@
 import { useState, useEffect, useRef } from 'react';
 import {
   LayoutDashboard, Server, FlaskConical, Brain,
-  TrendingUp, Users, Database, Swords, DollarSign, Settings, Trophy,
+  TrendingUp, Users, Database, Swords, DollarSign, Settings, Trophy, Medal,
 } from 'lucide-react';
 import { useGameStore, type ActivePage } from '@/store';
 
@@ -16,6 +16,7 @@ const NAV_ITEMS: { page: ActivePage; label: string; icon: typeof LayoutDashboard
   { page: 'data', label: 'Data', icon: Database, era: 'scaleup' },
   { page: 'competitors', label: 'Competitors', icon: Swords, era: 'scaleup' },
   { page: 'achievements', label: 'Achievements', icon: Trophy },
+  { page: 'leaderboard', label: 'Leaderboard', icon: Medal },
   { page: 'settings', label: 'Settings', icon: Settings },
 ];
 
diff --git a/apps/web/src/components/layout/TopBar.tsx b/apps/web/src/components/layout/TopBar.tsx
index 3cc92c0..78f48e4 100644
--- a/apps/web/src/components/layout/TopBar.tsx
+++ b/apps/web/src/components/layout/TopBar.tsx
@@ -1,5 +1,6 @@
-import { type ReactNode } from 'react';
-import { Pause, Play, Bell } from 'lucide-react';
+import { type ReactNode, useState } from 'react';
+import { Pause, Play, Bell, Share2 } from 'lucide-react';
+import { CompanyStatsCard } from '@/components/game/CompanyStatsCard';
 import { useGameStore } from '@/store';
 import { formatMoney, formatNumber, formatDuration, formatPercent } from '@ai-tycoon/shared';
 import type { GameSpeed } from '@ai-tycoon/shared';
@@ -21,6 +22,7 @@ export function TopBar() {
   const setGameSpeed = useGameStore((s) => s.setGameSpeed);
   const notifications = useGameStore((s) => s.notifications);
   const unreadCount = notifications.filter(n => !n.read).length;
+  const [showStats, setShowStats] = useState(false);
 
   const netIncome = revenuePerTick - expensesPerTick;
 
@@ -86,6 +88,14 @@ export function TopBar() {
           ))}
         </div>
 
+        <button
+          onClick={() => setShowStats(true)}
+          className="p-2 rounded hover:bg-surface-800 transition-colors"
+          title="Share Stats"
+        >
+          <Share2 size={18} />
+        </button>
+
         <button className="relative p-2 rounded hover:bg-surface-800 transition-colors">
           <Bell size={18} />
           {unreadCount > 0 && (
@@ -95,6 +105,8 @@ export function TopBar() {
           )}
         </button>
       </div>
+
+      {showStats && <CompanyStatsCard onClose={() => setShowStats(false)} />}
     </header>
   );
 }
diff --git a/apps/web/src/pages/LeaderboardPage.tsx b/apps/web/src/pages/LeaderboardPage.tsx
new file mode 100644
index 0000000..aa6f353
--- /dev/null
+++ b/apps/web/src/pages/LeaderboardPage.tsx
@@ -0,0 +1,124 @@
+import { useState, useEffect } from 'react';
+import { Trophy, Medal, Clock, TrendingUp } from 'lucide-react';
+import { useGameStore } from '@/store';
+import { formatMoney, formatNumber } from '@ai-tycoon/shared';
+import { api, getAuthToken } from '@/lib/api';
+
+interface LeaderboardEntry {
+  companyName: string;
+  score: number;
+  era: string;
+  tickCount: number;
+}
+
+const CATEGORIES = [
+  { id: 'revenue', label: 'Highest Revenue', icon: TrendingUp },
+  { id: 'fastest-agi', label: 'Fastest to AGI', icon: Clock },
+  { id: 'capability', label: 'Best Model', icon: Trophy },
+] as const;
+
+export function LeaderboardPage() {
+  const [category, setCategory] = useState('revenue');
+  const [entries, setEntries] = useState<LeaderboardEntry[]>([]);
+  const [loading, setLoading] = useState(false);
+  const [submitted, setSubmitted] = useState(false);
+  const companyName = useGameStore((s) => s.meta.companyName);
+  const totalRevenue = useGameStore((s) => s.economy.totalRevenue);
+  const era = useGameStore((s) => s.meta.currentEra);
+  const tickCount = useGameStore((s) => s.meta.tickCount);
+  const bestModel = useGameStore((s) =>
+    s.models.trainedModels.reduce((best, m) => Math.max(best, m.benchmarkScore), 0),
+  );
+
+  useEffect(() => {
+    setLoading(true);
+    api.leaderboard.get(category)
+      .then(data => setEntries(data.entries))
+      .catch(() => setEntries([]))
+      .finally(() => setLoading(false));
+  }, [category]);
+
+  const handleSubmit = async () => {
+    if (!getAuthToken()) return;
+    const scoreMap: Record<string, number> = {
+      revenue: Math.floor(totalRevenue),
+      'fastest-agi': era === 'agi' ? tickCount : 0,
+      capability: Math.floor(bestModel * 10),
+    };
+    const score = scoreMap[category];
+    if (score <= 0) return;
+    try {
+      await api.leaderboard.submit({ companyName, category, score, era, tickCount });
+      setSubmitted(true);
+      const data = await api.leaderboard.get(category);
+      setEntries(data.entries);
+    } catch { /* ignore */ }
+  };
+
+  return (
+    <div className="space-y-6">
+      <h2 className="text-2xl font-bold">Leaderboard</h2>
+
+      <div className="flex gap-2">
+        {CATEGORIES.map(cat => (
+          <button
+            key={cat.id}
+            onClick={() => { setCategory(cat.id); setSubmitted(false); }}
+            className={`flex items-center gap-2 px-4 py-2 rounded-lg text-sm border transition-colors ${
+              category === cat.id
+                ? 'bg-accent/20 border-accent text-accent-light'
+                : 'bg-surface-900 border-surface-700 text-surface-300 hover:border-surface-500'
+            }`}
+          >
+            <cat.icon size={14} />
+            {cat.label}
+          </button>
+        ))}
+      </div>
+
+      {getAuthToken() && !submitted && (
+        <button
+          onClick={handleSubmit}
+          className="bg-accent hover:bg-accent-dark text-white px-4 py-2 rounded-lg text-sm font-medium"
+        >
+          Submit My Score
+        </button>
+      )}
+      {submitted && <p className="text-sm text-success">Score submitted!</p>}
+
+      <div className="bg-surface-900 border border-surface-700 rounded-xl overflow-hidden">
+        {loading ? (
+          <div className="p-8 text-center text-surface-500">Loading...</div>
+        ) : entries.length === 0 ? (
+          <div className="p-8 text-center text-surface-500">
+            <Trophy size={48} className="mx-auto mb-4 opacity-50" />
+            <p>No entries yet. Be the first!</p>
+          </div>
+        ) : (
+          <table className="w-full text-sm">
+            <thead>
+              <tr className="border-b border-surface-700 text-surface-400 text-xs uppercase">
+                <th className="p-3 text-left w-12">#</th>
+                <th className="p-3 text-left">Company</th>
+                <th className="p-3 text-right">Score</th>
+                <th className="p-3 text-right">Era</th>
+              </tr>
+            </thead>
+            <tbody>
+              {entries.map((entry, i) => (
+                <tr key={i} className="border-b border-surface-800 hover:bg-surface-800/50">
+                  <td className="p-3">
+                    {i < 3 ? <Medal size={16} className={i === 0 ? 'text-yellow-400' : i === 1 ? 'text-gray-400' : 'text-orange-400'} /> : i + 1}
+                  </td>
+                  <td className="p-3 font-medium">{entry.companyName}</td>
+                  <td className="p-3 text-right font-mono">{formatNumber(entry.score)}</td>
+                  <td className="p-3 text-right text-surface-400 capitalize">{entry.era}</td>
+                </tr>
+              ))}
+            </tbody>
+          </table>
+        )}
+      </div>
+    </div>
+  );
+}
diff --git a/apps/web/src/store/index.ts b/apps/web/src/store/index.ts
index 8d590db..8b417d7 100644
--- a/apps/web/src/store/index.ts
+++ b/apps/web/src/store/index.ts
@@ -23,7 +23,7 @@ import {
 import { INITIAL_RIVALS } from '@ai-tycoon/game-engine';
 
 export type ActivePage = 'dashboard' | 'infrastructure' | 'research' | 'models'
-  | 'market' | 'talent' | 'data' | 'competitors' | 'finance' | 'achievements' | 'settings';
+  | 'market' | 'talent' | 'data' | 'competitors' | 'finance' | 'achievements' | 'leaderboard' | 'settings';
 
 interface UIState {
   activePage: ActivePage;
@@ -252,18 +252,28 @@ export const useGameStore = create<Store>()(
 
         let money = s.economy.money;
         let reputation = { ...s.reputation };
+        let talent = { ...s.talent };
         const consequences = choice.consequences;
 
         for (const c of consequences) {
           switch (c.type) {
             case 'money': money += c.value; break;
             case 'reputation': reputation = { ...reputation, score: Math.min(100, Math.max(0, reputation.score + c.value)), publicPerception: Math.min(100, Math.max(0, reputation.publicPerception + c.value)) }; break;
+            case 'regulation': reputation = { ...reputation, regulatoryStanding: Math.min(100, Math.max(0, reputation.regulatoryStanding + c.value)) }; break;
+            case 'talent': {
+              const dept = c.target as keyof typeof talent.departments | undefined;
+              if (dept && talent.departments[dept]) {
+                talent = { ...talent, departments: { ...talent.departments, [dept]: { ...talent.departments[dept], headcount: Math.max(0, talent.departments[dept].headcount + c.value) } } };
+              }
+              break;
+            }
           }
         }
 
         return {
           economy: { ...s.economy, money: Math.max(0, money) },
           reputation,
+          talent,
           events: {
             ...s.events,
             activeEvents: s.events.activeEvents.filter(e => e.instanceId !== instanceId),
diff --git a/packages/game-engine/src/data/events.ts b/packages/game-engine/src/data/events.ts
index ba5f269..cc932e5 100644
--- a/packages/game-engine/src/data/events.ts
+++ b/packages/game-engine/src/data/events.ts
@@ -1559,4 +1559,237 @@ export const EVENT_DEFINITIONS: EventDefinition[] = [
     defaultChoiceIndex: 0,
     expiryTicks: 360,
   },
+
+  // ============================================================
+  // GEOPOLITICAL EVENTS (6)
+  // ============================================================
+  {
+    id: 'geo_export_controls',
+    title: 'New AI Export Controls',
+    descriptionTemplate:
+      'The government has announced export controls on advanced AI chips and models. International operations may be affected.',
+    category: 'regulatory',
+    eras: ['scaleup', 'bigtech', 'agi'],
+    weight: 6,
+    cooldownTicks: 1200,
+    maxOccurrences: 2,
+    prerequisites: [],
+    conditions: [{ field: 'models.trainedModels.length', operator: 'gte', value: 2 }],
+    choices: [
+      {
+        label: 'Lobby for exemptions',
+        description: 'Spend money to lobby policymakers for carve-outs.',
+        consequences: [
+          { type: 'money', value: -100000 },
+          { type: 'regulation', value: 10 },
+        ],
+      },
+      {
+        label: 'Comply and adapt',
+        description: 'Accept the restrictions and restructure international operations.',
+        consequences: [
+          { type: 'reputation', value: 5 },
+          { type: 'regulation', value: 5 },
+          { type: 'money', value: -30000 },
+        ],
+      },
+      {
+        label: 'Challenge in court',
+        description: 'File a legal challenge. Risky but could set favorable precedent.',
+        consequences: [
+          { type: 'money', value: -200000 },
+          { type: 'regulation', value: -10 },
+          { type: 'reputation', value: -5 },
+        ],
+      },
+    ],
+    defaultChoiceIndex: 1,
+    expiryTicks: 300,
+  },
+  {
+    id: 'geo_energy_crisis',
+    title: 'Energy Crisis in Data Center Region',
+    descriptionTemplate:
+      'A regional energy crisis is driving electricity costs up 40% in key data center locations. Your infrastructure costs are spiking.',
+    category: 'market',
+    eras: ['scaleup', 'bigtech', 'agi'],
+    weight: 5,
+    cooldownTicks: 1500,
+    maxOccurrences: 2,
+    prerequisites: [],
+    conditions: [{ field: 'infrastructure.dataCenters.length', operator: 'gte', value: 1 }],
+    choices: [
+      {
+        label: 'Negotiate long-term energy contracts',
+        description: 'Lock in rates now before they go higher. Requires upfront capital.',
+        consequences: [
+          { type: 'money', value: -150000 },
+        ],
+      },
+      {
+        label: 'Invest in on-site renewable energy',
+        description: 'Install solar panels and battery storage. High upfront cost, long-term savings.',
+        consequences: [
+          { type: 'money', value: -300000 },
+          { type: 'reputation', value: 10 },
+        ],
+      },
+      {
+        label: 'Absorb the costs',
+        description: 'Take the hit and hope prices normalize.',
+        consequences: [
+          { type: 'money', value: -50000 },
+        ],
+      },
+    ],
+    defaultChoiceIndex: 2,
+    expiryTicks: 300,
+  },
+  {
+    id: 'geo_natural_disaster',
+    title: 'Natural Disaster Threatens Data Center',
+    descriptionTemplate:
+      'Severe weather has been reported near one of your data center locations. Your ops team is preparing contingency plans.',
+    category: 'industry',
+    eras: ['startup', 'scaleup', 'bigtech', 'agi'],
+    weight: 4,
+    cooldownTicks: 1800,
+    maxOccurrences: 3,
+    prerequisites: [],
+    conditions: [{ field: 'infrastructure.dataCenters.length', operator: 'gte', value: 1 }],
+    choices: [
+      {
+        label: 'Activate disaster recovery',
+        description: 'Failover to backup systems. Costs money but protects uptime.',
+        consequences: [
+          { type: 'money', value: -50000 },
+          { type: 'reputation', value: 3 },
+        ],
+      },
+      {
+        label: 'Ride it out',
+        description: 'Hope the storm misses. Save money but risk downtime.',
+        consequences: [
+          { type: 'reputation', value: -8 },
+        ],
+      },
+    ],
+    defaultChoiceIndex: 0,
+    expiryTicks: 180,
+  },
+  {
+    id: 'geo_ai_safety_summit',
+    title: 'International AI Safety Summit',
+    descriptionTemplate:
+      'World leaders are convening a summit on AI safety. You have been invited to present your company\'s approach to responsible AI.',
+    category: 'regulatory',
+    eras: ['scaleup', 'bigtech', 'agi'],
+    weight: 6,
+    cooldownTicks: 1500,
+    maxOccurrences: 2,
+    prerequisites: [],
+    conditions: [{ field: 'reputation.score', operator: 'gte', value: 30 }],
+    choices: [
+      {
+        label: 'Sign voluntary safety commitments',
+        description: 'Join the safety pledge. Good PR, but constrains future development speed.',
+        consequences: [
+          { type: 'reputation', value: 15 },
+          { type: 'regulation', value: 10 },
+          { type: 'research_speed', value: -0.05 },
+        ],
+      },
+      {
+        label: 'Attend but make no commitments',
+        description: 'Show up, listen, and keep your options open.',
+        consequences: [
+          { type: 'reputation', value: 3 },
+        ],
+      },
+      {
+        label: 'Skip the summit',
+        description: 'Your engineers have models to train. No time for politics.',
+        consequences: [
+          { type: 'reputation', value: -10 },
+          { type: 'regulation', value: -5 },
+        ],
+      },
+    ],
+    defaultChoiceIndex: 1,
+    expiryTicks: 240,
+  },
+  {
+    id: 'geo_talent_immigration',
+    title: 'Immigration Policy Changes',
+    descriptionTemplate:
+      'New immigration restrictions are making it harder to recruit international AI talent. Your HR team is concerned about pipeline impact.',
+    category: 'regulatory',
+    eras: ['scaleup', 'bigtech'],
+    weight: 4,
+    cooldownTicks: 1200,
+    maxOccurrences: 1,
+    prerequisites: [],
+    conditions: [],
+    choices: [
+      {
+        label: 'Open a remote research lab abroad',
+        description: 'Set up a satellite research office in a talent-friendly country.',
+        consequences: [
+          { type: 'money', value: -200000 },
+          { type: 'talent', value: 5, target: 'research' },
+        ],
+      },
+      {
+        label: 'Increase domestic salaries',
+        description: 'Compete harder for local talent with premium compensation.',
+        consequences: [
+          { type: 'money', value: -100000 },
+          { type: 'talent', value: 2, target: 'research' },
+        ],
+      },
+    ],
+    defaultChoiceIndex: 1,
+    expiryTicks: 360,
+  },
+  {
+    id: 'geo_data_sovereignty',
+    title: 'Data Sovereignty Regulations',
+    descriptionTemplate:
+      'Multiple countries are enacting data localization laws. User data must be stored within national borders, complicating your global infrastructure.',
+    category: 'regulatory',
+    eras: ['bigtech', 'agi'],
+    weight: 5,
+    cooldownTicks: 1500,
+    maxOccurrences: 1,
+    prerequisites: [],
+    conditions: [{ field: 'market.consumers.totalSubscribers', operator: 'gte', value: 5000 }],
+    choices: [
+      {
+        label: 'Build regional data centers',
+        description: 'Comply by deploying infrastructure in affected regions. Expensive but thorough.',
+        consequences: [
+          { type: 'money', value: -500000 },
+          { type: 'regulation', value: 15 },
+          { type: 'reputation', value: 5 },
+        ],
+      },
+      {
+        label: 'Withdraw from those markets',
+        description: 'Stop serving users in affected regions to avoid compliance costs.',
+        consequences: [
+          { type: 'reputation', value: -10 },
+        ],
+      },
+      {
+        label: 'Implement data partitioning',
+        description: 'Use technical solutions to segment data by region without new DCs.',
+        consequences: [
+          { type: 'money', value: -100000 },
+          { type: 'regulation', value: 5 },
+        ],
+      },
+    ],
+    defaultChoiceIndex: 2,
+    expiryTicks: 360,
+  },
 ];
diff --git a/packages/game-engine/src/systems/economySystem.ts b/packages/game-engine/src/systems/economySystem.ts
index e024ec4..4ebab07 100644
--- a/packages/game-engine/src/systems/economySystem.ts
+++ b/packages/game-engine/src/systems/economySystem.ts
@@ -1,5 +1,5 @@
 import type { GameState, EconomyState, InfrastructureState } from '@ai-tycoon/shared';
-import { FINANCIAL_SNAPSHOT_INTERVAL, MAX_FINANCIAL_HISTORY } from '@ai-tycoon/shared';
+import { FINANCIAL_SNAPSHOT_INTERVAL, MAX_FINANCIAL_HISTORY, REGULATION_COMPLIANCE_PER_CAPABILITY } from '@ai-tycoon/shared';
 import type { MarketTickResult } from './marketSystem';
 
 export function processEconomy(
@@ -15,7 +15,12 @@ export function processEconomy(
 
   const talentExpenses = state.talent.totalSalaryPerTick;
   const dataExpenses = state.data.partnerships.reduce((sum, p) => sum + p.costPerTick, 0);
-  const expenses = infraExpenses + talentExpenses + dataExpenses;
+
+  const bestCapability = state.models.trainedModels.reduce((best, m) => Math.max(best, m.benchmarkScore), 0);
+  const eraIdx = ['startup', 'scaleup', 'bigtech', 'agi'].indexOf(state.meta.currentEra);
+  const complianceCost = bestCapability > 30 ? bestCapability * REGULATION_COMPLIANCE_PER_CAPABILITY * (1 + eraIdx * 0.5) / 100 : 0;
+
+  const expenses = infraExpenses + talentExpenses + dataExpenses + complianceCost;
 
   const money = state.economy.money + revenue - expenses;
 
diff --git a/packages/game-engine/src/systems/modelSystem.ts b/packages/game-engine/src/systems/modelSystem.ts
index 5e397c6..bd8e2cc 100644
--- a/packages/game-engine/src/systems/modelSystem.ts
+++ b/packages/game-engine/src/systems/modelSystem.ts
@@ -65,10 +65,16 @@ function createTrainedModel(
     speed: Math.max(1, 100 - compute * 0.5 + efficiencyBonus * 2),
   };
 
-  const benchmarkScore = (capabilities.reasoning * 0.3 + capabilities.coding * 0.25 +
-    capabilities.creative * 0.2 + capabilities.multimodal * 0.15 + capabilities.agents * 0.1);
+  const safetyResearch = state.research.completedResearch.filter(
+    r => r.includes('alignment') || r.includes('interpretability') || r.includes('constitutional'),
+  ).length;
+  const safetyScore = Math.min(100, 30 + safetyResearch * 15 + Math.random() * 10);
 
-  const safetyScore = 50 + Math.random() * 20;
+  const safetyPenalty = safetyScore > 60 ? (safetyScore - 60) * 0.1 : 0;
+  const benchmarkScore = Math.max(0,
+    (capabilities.reasoning * 0.3 + capabilities.coding * 0.25 +
+    capabilities.creative * 0.2 + capabilities.multimodal * 0.15 + capabilities.agents * 0.1) - safetyPenalty,
+  );
 
   const parameterCount = Math.pow(10, generation) * (0.5 + Math.random());
 
diff --git a/packages/game-engine/src/systems/reputationSystem.ts b/packages/game-engine/src/systems/reputationSystem.ts
index 4202f31..d9992da 100644
--- a/packages/game-engine/src/systems/reputationSystem.ts
+++ b/packages/game-engine/src/systems/reputationSystem.ts
@@ -1,8 +1,48 @@
 import type { GameState, ReputationState } from '@ai-tycoon/shared';
-import { MAX_REPUTATION_HISTORY } from '@ai-tycoon/shared';
+import {
+  MAX_REPUTATION_HISTORY,
+  SAFETY_INCIDENT_PROBABILITY_BASE,
+  SAFETY_INCIDENT_REPUTATION_HIT,
+  LOW_SAFETY_THRESHOLD,
+} from '@ai-tycoon/shared';
 
-export function processReputation(state: GameState): ReputationState {
-  const { safetyRecord, publicPerception, employeeSatisfaction, regulatoryStanding } = state.reputation;
+export interface ReputationTickResult {
+  reputation: ReputationState;
+  safetyIncident: boolean;
+}
+
+export function processReputation(state: GameState): ReputationState & { _safetyIncident?: boolean } {
+  let { safetyRecord, publicPerception, employeeSatisfaction, regulatoryStanding } = state.reputation;
+
+  const bestModel = state.models.trainedModels
+    .filter(m => m.isDeployed)
+    .sort((a, b) => b.benchmarkScore - a.benchmarkScore)[0];
+
+  let safetyIncident = false;
+  if (bestModel) {
+    const safetyLevel = bestModel.safetyScore;
+    if (safetyLevel < LOW_SAFETY_THRESHOLD && state.meta.tickCount % 60 === 0) {
+      const incidentProb = SAFETY_INCIDENT_PROBABILITY_BASE * (LOW_SAFETY_THRESHOLD - safetyLevel);
+      if (Math.random() < incidentProb) {
+        safetyRecord = Math.max(0, safetyRecord - SAFETY_INCIDENT_REPUTATION_HIT);
+        publicPerception = Math.max(0, publicPerception - SAFETY_INCIDENT_REPUTATION_HIT * 0.5);
+        safetyIncident = true;
+      }
+    }
+  }
+
+  const eraIdx = ['startup', 'scaleup', 'bigtech', 'agi'].indexOf(state.meta.currentEra);
+  const regulatoryPressure = eraIdx * 5;
+  const safetyResearchCount = state.research.completedResearch
+    .filter(r => r.includes('alignment') || r.includes('interpretability') || r.includes('constitutional')).length;
+  const complianceBonus = safetyResearchCount * 8;
+  regulatoryStanding = Math.min(100, Math.max(0,
+    50 + complianceBonus - regulatoryPressure,
+  ));
+
+  const talentMorale = Object.values(state.talent.departments)
+    .reduce((sum, d) => sum + d.morale, 0) / 4;
+  employeeSatisfaction = talentMorale;
 
   const score = Math.round(
     safetyRecord * 0.3 +
@@ -19,9 +59,15 @@ export function processReputation(state: GameState): ReputationState {
     }
   }
 
-  return {
+  const result: ReputationState & { _safetyIncident?: boolean } = {
     ...state.reputation,
     score,
+    safetyRecord,
+    publicPerception,
+    employeeSatisfaction,
+    regulatoryStanding,
     reputationHistory,
   };
+  if (safetyIncident) result._safetyIncident = true;
+  return result;
 }
diff --git a/packages/game-engine/src/tick.ts b/packages/game-engine/src/tick.ts
index d2956be..60c8a42 100644
--- a/packages/game-engine/src/tick.ts
+++ b/packages/game-engine/src/tick.ts
@@ -73,7 +73,15 @@ export function processTick(state: GameState): Partial<GameState> {
     });
   }
 
-  const reputation = processReputation(stateWithTalent);
+  const reputationResult = processReputation(stateWithTalent);
+  const { _safetyIncident, ...reputation } = reputationResult;
+  if (_safetyIncident) {
+    notifications.push({
+      title: 'Safety Incident!',
+      message: 'Your AI model caused a safety incident. Public trust and safety record damaged.',
+      type: 'danger',
+    });
+  }
   const economy = processEconomy(stateWithTalent, market, infrastructure);
   const data = processData(stateWithTalent);
   const competitors = processCompetitors(stateWithTalent);
diff --git a/packages/shared/src/constants/gameBalance.ts b/packages/shared/src/constants/gameBalance.ts
index 1332428..1652227 100644
--- a/packages/shared/src/constants/gameBalance.ts
+++ b/packages/shared/src/constants/gameBalance.ts
@@ -53,3 +53,9 @@ export const FUNDING_ROUNDS = {
 export const OPEN_SOURCE_REPUTATION_BOOST = 8;
 export const OPEN_SOURCE_TALENT_ATTRACTION = 0.15;
 export const OPEN_SOURCE_REVENUE_PENALTY = 0.10;
+
+export const REGULATION_COMPLIANCE_BASE_COST = 0;
+export const REGULATION_COMPLIANCE_PER_CAPABILITY = 0.5;
+export const SAFETY_INCIDENT_PROBABILITY_BASE = 0.0002;
+export const SAFETY_INCIDENT_REPUTATION_HIT = 15;
+export const LOW_SAFETY_THRESHOLD = 40;