A Saudi national working as an OpenAI engineer was arrested after allegedly planting a covert recording device inside an executive conference room at the company’s San Francisco office, federal authorities announced Tuesday.
Abdulrahman Alfozan, 35, was arrested Oct. 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 communications about the company’s super intelligence tech,” FBI Director Kash Patel wrote on X on Tuesday.
“Protecting American SI innovation is critically important and FBI views it as one of our highest counterintelligence priorities,” Patel added.
OPENAI FIRES 3 SAFETY RESEARCHERS ACCUSED OF SHARING CONFIDENTIAL COMPANY INFORMATION: REPORT
Attorney General Todd Blanche said the alleged attempt was taken “extremely seriously.”
“This alleged attempt by a Saudi national to steal sensitive communications from OpenAI was taken extremely seriously,” Blanche wrote on X.
“Theft of intellectual property involving cutting-edge super intelligence technology poses a serious threat to our national security,” he continued. “[The Justice Department] will continue to take swift action alongside federal law enforcement and our partners at [The Office of the Director of National Intelligence] to protect American innovation and safeguard our nation.”
OpenAI discovered the encrypted device Sept. 30 plugged into a USB port on the back of a television in a conference room used for “highly confidential” discussions involving proprietary research, product plans and business opportunities, prosecutors said.
The device, concealed in toilet paper, had allegedly been installed two days earlier.
OpenAI told FOX Business its technical surveillance countermeasures team discovered the device during a Sept. 30 sweep of the conference room.
The company said it has evidence Alfozan intended to deploy additional recording devices in sensitive areas of its offices to secretly record meetings.
Security footage showed Alfozan, who had worked as an OpenAI engineer since July 2025, near the conference room multiple times before the device was discovered, despite lacking authorization to access the room, according to the complaint.
Prosecutors said Alfozan had also searched for information about OpenAI’s buildings, meeting rooms, calendars, executive locations and external partner meetings.
A chatbot account associated with Alfozan’s spouse that shared identifiers with his account submitted prompts about building and concealing equipment, including a continuous audio recorder, Wi-Fi connectivity, live listening and encrypted storage, authorities said.
OPENAI’S SAM ALTMAN SAYS AI BENEFITS JUSTIFY ACCEPTING SOME RISKS
The account also allegedly submitted prompts with details matching the device later found at OpenAI.
On Oct. 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.
That same day, OpenAI security found a second, similar recording device inside a bag Alfozan left unattended in another room, along with his wallet and identification, the DOJ said.
“We used our models to understand the device and where it had come from, 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 indication Alfozan improperly accessed or exfiltrated model weights, source code or customer data. He has since been terminated.
OpenAI told FOX Business it coordinated with the FBI on the timing of Alfozan’s termination to avoid disrupting the investigation. Between the device’s discovery Sept. 30 and his arrest Oct. 9, the company said it gradually restricted his access to systems and offices before placing him on leave and securing his company-issued equipment.
Alfozan was terminated the day of his arrest.
Amy Kremer, chairwoman of Humans First, told FOX Business that the allegations highlight concerns about insider threats at companies developing advanced AI technology.
ANTHROPIC, OPENAI CEOS WARN AI COULD THREATEN HUMANITY WITHOUT SAFEGUARDS
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“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.
Fox News’ Bill Melugin, David Spunt and Jake Gibson contributed to this report.
