Musk’s xAI Quietly Dropped Nevada Public Benefit Status Before Merging With X

Elon Musk’s artificial intelligence company xAI quietly dropped its Nevada public benefit corporation status in 2024, according to CNBC. The change came months before xAI merged with X, formerly Twitter, and as the company launched its Grok chatbot. Legal Advocates for Safe Science and Technology, which uncovered xAI’s corporate filings, accused the company of using the PBC status for publicity before abandoning it. Critics argue Nevada law shields corporations from shareholder accountability, and experts note xAI never published the impact reports typically expected of a PBC. Musk’s lawyer appeared unaware of the status change as recently as May 2025, describing xAI in court filings against OpenAI as a public benefit corporation. OpenAI recently reaffirmed that its nonprofit will maintain control as it transitions into a PBC.