FBI Weighs Five-Year Espionage Count in OpenAI Recording Case

The Federal Bureau of Investigation is evaluating whether to file an additional economic espionage charge against Abdulrahman Alfozan, a 35-year-old engineer arrested for installing a hidden recording device in an OpenAI executive conference room. A law enforcement official told The Wall Street Journal that prosecutors are assessing if Alfozan stole corporate information to provide to the Saudi government. The official noted that this potential charge applies even if Alfozan was not formally recruited for a spying role.

Alfozan is currently charged with violating a federal recording statute. A conviction on that count carries a maximum prison sentence of five years. His defense attorney, William Pernik, stated that his client has not yet received notice from the government regarding the proposed additional count. Alfozan is a Saudi national and legal permanent resident who joined OpenAI in July 2025 after studying computer science at the Massachusetts Institute of Technology and working at Meta.

The device was a thumb-sized unit containing a microphone and camera, wrapped in toilet paper and plugged behind a television in a San Francisco meeting room used by company leadership. OpenAI discovered the equipment during a security sweep on September 30 and subsequently alerted the FBI. Alfozan was arrested earlier this month. His next court hearing is scheduled for November 6.

Court filings reveal that Alfozan maintained frequent WhatsApp communications with an unnamed member of the Saudi royal family throughout 2025 and 2026. The family member allegedly attempted to recruit Alfozan for a new Saudi AI initiative, stating, "Saudi needs you more than [sic] the US!" Alfozan replied with "100" but indicated he would remain in the United States until his OpenAI stock vested. Prosecutors identify October 5 as the date of their most recent known contact, the same day Alfozan allegedly visited the conference room to check on the device.

Sources familiar with the investigation indicate that OpenAI is currently determining whether the incident represents corporate espionage or state-sponsored spying. The law enforcement official cautioned that the review may not result in further charges. The Saudi embassy in Washington and OpenAI have not issued public comments on the case.

Last week, San Francisco federal judge Alex Tse ordered Alfozan detained without bail. The judge cited a significant risk of flight. Tse described the Saudi Consulate in Los Angeles's offer to pay the full bail amount as problematic. Alfozan’s detention remains in effect as the government finalizes its decision on the espionage count.