Musk quietly dropped xAI’s public benefit status while suing OpenAI, court filings show

Antitrust Allegations & Legal Actions - XAI, Elon Musk's AI startup, is suing Apple and OpenAI for alleged antitrust violations, claiming they colluded to dominate the AI assistant market [2] - The lawsuit alleges Apple manipulates App Store rankings to disadvantage AI chatbots competing with OpenAI's ChatGPT, giving OpenAI an unfair advantage [3] - Musk seeks billions of dollars in damages and a court order to halt the alleged anti-competitive practices [3] - The core issue extends beyond app store rankings to the future of search, particularly concerning Google's default search engine status on Apple devices [4] AI Market Dynamics & Competition - OpenAI's search market share has reportedly doubled in the last 6 months [4] - Musk aims to ensure Grock, XAI's AI offering, remains relevant in the AI conversation [5] - Musk co-founded OpenAI with Altman 10 years ago but left due to disagreements over its direction, later launching XAI in 2023 to compete [5] XAI's Corporate Structure & Evolution - XAI was initially founded as a public benefit corporation legally obligated to comply with the public good, but it quietly lost that status last year [6] - OpenAI is restructuring into a public benefit corporation to comply with stipulations of a SoftBank-led $40 billion fundraising [7]