FBI weighs espionage charge for OpenAI engineer in bugging probe

The Federal Bureau of Investigation is reviewing whether to add an economic espionage count to the federal case against Abdulrahman Alfozan. Alfozan, a 35-year-old Saudi national and legal permanent resident, is accused of secretly recording conversations in an OpenAI executive conference room. A law enforcement official told The Wall Street Journal that the agency is evaluating the evidence to determine if the alleged theft of information warrants additional prosecution.

Alfozan worked as an engineer at OpenAI before his arrest earlier this month. Prosecutors allege he concealed a thumb-sized device with a microphone and camera by wrapping it in toilet paper and plugging it behind a television. The recording equipment was located in a San Francisco meeting room primarily used by company leadership. He currently faces a charge of violating a federal recording statute, which carries a maximum prison sentence of five years upon conviction.

The investigation focuses on whether Alfozan transmitted company data to the Saudi government. Federal prosecutors filed court documents stating that Alfozan maintained frequent WhatsApp contact with a member of the Saudi royal family throughout 2025 and 2026. The unnamed royal allegedly attempted to recruit Alfozan for a new AI initiative in Saudi Arabia. Court filings quote the royal telling Alfozan, "Saudi needs you more than [sic] the US!" Alfozan replied "100" but stated he would not leave until his OpenAI stock options vested.

Prosecutors noted that their most recent recorded communication with the royal family member occurred on 5 October. On that same day, Alfozan allegedly visited the conference room to check on the status of the hidden device. OpenAI confirmed that security staff had already removed the equipment on 30 September during a routine sweep. The company notified the FBI immediately after discovering the object.

Legal counsel William Pernik said he has not yet received formal notice of additional charges from the government. The Saudi embassy in Washington and OpenAI have not commented on the specific details of the case. A source familiar with the investigation noted that OpenAI is still assessing whether the incident constitutes corporate espionage or state-sponsored spying. The law enforcement official indicated that the review may not result in further charges.

Alfozan studied computer science at the Massachusetts Institute of Technology and previously worked at Meta and other technology firms. He joined OpenAI in July 2025, according to the FBI complaint. Last week, San Francisco federal judge Alex Tse ordered Alfozan detained without bail. The judge cited a risk of flight and described the Saudi Consulate in Los Angeles offer to pay the full bail amount as problematic. Alfozan's next court hearing is set for 6 November.