A Saudi national employed as an OpenAI engineer was arrested after allegedly placing a covert recording device inside an executive conference room at the company’s San Francisco headquarters, federal authorities announced Tuesday.
Abdulrahman Alfozan, 35, was taken into custody on October 9 and charged with using or attempting to use a device to intercept oral communications, according to the Department of Justice.
“FBI and partners arrested this individual after he allegedly concealed a recording device inside his employer’s executive conference room to secretly capture sensitive discussions about the company’s advanced AI technology,” FBI Director Kash Patel wrote on X on Tuesday.
“Protecting American AI innovation is critically important and the FBI regards it as one of our top counterintelligence priorities,” Patel added.
The device, hidden inside a roll of toilet paper, was allegedly installed two days before its discovery. (Department of Justice)
OpenAI discovered the encrypted device on September 30, plugged into a USB port on the rear of a television in a conference room reserved for highly confidential discussions covering proprietary research, product plans and business opportunities, prosecutors said.
The device, concealed in toilet paper, had allegedly been installed two days earlier.
Security footage showed Alfozan, who had worked as an OpenAI engineer since July 2025, near the conference room multiple times before the device was found, despite lacking authorization to enter the space, according to the complaint.
Prosecutors said Alfozan had also searched for information about OpenAI’s facilities, meeting schedules, calendars, executive whereabouts and external partner meetings.
A chatbot account linked to Alfozan’s spouse, sharing identifiers with his own account, submitted prompts about constructing and hiding equipment, including a continuous audio recorder, Wi‑Fi capability, live listening and encrypted storage, authorities said.
On October 5, surveillance footage captured Alfozan entering the conference room and appearing to look behind the television where the device had been hidden, according to prosecutors. (Department of Justice)
The account also allegedly submitted prompts that matched details of the device later recovered at OpenAI.
On October 5, surveillance footage captured Alfozan entering the conference room and appearing to look behind the television where the device had been hidden, according to prosecutors.
The same day, OpenAI security uncovered a second, similar recording device inside a bag Alfozan left unattended in another room, together with his wallet and identification, the DOJ said.
“We used our models to understand the device and trace its origin, identifying that a specific employee had planted it a few days earlier,” OpenAI said in a statement.
The company said it referred the matter to the FBI and found no evidence that Alfozan improperly accessed or exfiltrated model weights, source code or customer data. He has since been terminated.
Amy Kremer, chairwoman of Humans First, told FOX Business that the allegations underscore concerns about insider threats at firms developing cutting‑edge AI technology.
OpenAI said it referred the matter to the FBI and found no indication Alfozan improperly accessed or exfiltrated model weights, source code or customer data. (Omar Marques/SOPA Images/LightRocket via Getty Images)
“If these companies want Americans to believe that winning the AI race is a national security imperative, securing their own labs must be a basic requirement,” Kremer said. “That means meaningful background screening, scrutiny of foreign government ties, strict controls on access to sensitive research, and ongoing monitoring for insider threats.”
Kremer added, “The allegations must be investigated fully. America’s AI advantage cannot be protected by promises alone. Innovation with accountability means enforceable security standards that put the American people and our national security first.”
Alfozan made his initial federal court appearance Tuesday. If convicted, he faces up to five years in prison, a $250,000 fine and three years of supervised release.
OpenAI could not immediately be reached by FOX Business for additional comment.
Fox News’ Bill Melugin, David Spunt and Jake Gibson contributed to this report.
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