Do I have to inform USCIS if I am sticking to Company A and not joining Company B on H1B?

I am currently employed by Company A on H1B.
I recently got an offer from Company B who applied for H1B transfer. I’ve decided to not join them and have conveyed my decision after the H1B with Company B was approved.

I have not informed anything at Company A. Does my H1B with Company A remain valid?
Do I have to inform USCIS that I am still employed at Company A?

H1B is not your visa, its the Employer’s. You dont need to do anything. Since its employer owned, its their job to use it or cancel it or do what ever they want to do. You dont need to inform anything about it to anyone. If Company A keeps the visa to be valid, it remains valid. If they cancel it, it gets canceled. It doesnt hurt you in anyway.

since my h1b petition with current employer is still valid and has not expired… I can continue to work normally… right?

Yes you can continue to work on that valid visa