The Federal Bureau of Investigation (FBI) arrested a Saudi national, Abdulrahman Alfozan, who worked as an engineer in OpenAI, over allegations that he secretly installed an audio-recording device in an executive conference room at the company's San Francisco office.
According to the criminal complaint cited by federal prosecutors, the device was discovered on September 30, concealed in toilet paper and plugged into a USB port at the back of a television in the conference room. FBI Director Kash Patel announced the arrest through a post on X and stated that the investigation is ongoing.
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The accused was arrested on October 9 and appeared in federal court on Tuesday according to the Department of Justice (DOJ). He is facing a charge of using or attempting to use an electronic device to intercept oral communications.
The complaint against Alfozan alleges that the device was installed around September 28 and contained encrypted data, while the room was regularly used for meetings involving confidential technical, commercial and strategic information.
How Was The Device Discovered?
According to the DOJ, the conference room was frequently used for discussions involving proprietary research, product plans, business development opportunities and non-public information about OpenAI's technical progress, capabilities and strategic priorities.
Federal prosecutors stated that CCTV footage showed Alfozan near the conference room on multiple occasions before the device was discovered. Alfozan was reportedly not authorised to enter the room or participate in its meetings. The complaint also alleges that he came back on October 5 and appeared to look behind the television where the device had been installed.
Alfozan had also reportedly used a productivity tool to make inquiries about OpenAI's building addresses, meeting room capacities, calendars and the location of meetings involving company leadership and external partners.
According to the complaint, a chatbot account associated with Alfozan's spouse also submitted prompts between September 24 and September 30 about building and installing a continuous audio recorder, improve live listening, configuring Wi-Fi connectivity, encrypting storage and accessing the device remotely.
Prosecutors stated that the same account submitted prompts specifically related to the recording device, including references to its custom header and unique media access control address between September 27 and September 28.
Prosecutors allege that on October 5, Alfozan left a bag unattended in a different room inside the OpenAI building. Security personnel found his wallet and identification in the bag, along with another recording device similar to the one discovered in the executive conference room.
OpenAI Uses Its AI Models In The Investigation
OpenAI stated that it used its internal AI models to examine the sophisticated recording device, understand its origins and identify the employee allegedly responsible for installing it. The company said in a statement that they referred the matter to the FBI and terminated the employee, while confirming that it was cooperating in the ongoing investigation.
Open AI also said that it had no indication of Alfozan improperly accessing or extracting model weights, source code or customer data. The company did not publicly establish whether any confidential conversations had been recorded or whether information had been passed to another individual or organisation.
What Have The Authorities Said?
FBI director Kash Patel said that, according to the DOJ, Alfozan allegedly concealed the device in order to capture sensitive communications concerning OpenAI's advanced AI technology.
US Attorney Craig H. Missakian for the Northern District of California described protecting American technological innovation as a national security concern.
The allegations have raised questions about insider security at AI companies where confidential research, product development and commercial strategies can carry significant economic and strategic value.
The publicly reported allegations do not establish that Alfozan acted on behalf of the Saudi government or any other foreign government.
What Happens Next?
The DOJ stated that Alfozan remained in federal custody following his initial court appearance on Tuesday, with a detention hearing scheduled for October 19. If convicted, he faces a maximum penalty of five years in prison, a fine of upto $250,000 and upto three years of supervised release according to the DOJ.
The FBI is investigating the case, which is being prosecuted by the US Attorney's Office of the Northern District of California.
The DOJ has emphasised that the criminal complaint contains allegations and that Alfozan is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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