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A Saudi national working as an engineer for OpenAI was arrested after allegedly installing a secret recording device in a management conference room at the company’s San Francisco office, federal authorities said 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 Justice Department.
“The FBI and its partners arrested this individual after he allegedly hid a recording device in his employer’s executive conference room to secretly capture sensitive communications on the company’s super intelligence technology,” FBI Director Kash Patel wrote on X on Tuesday.
“Protecting American IS innovation is critically important and the FBI considers it one of our highest counterintelligence priorities,” Patel added.
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The device, hidden in toilet paper, was apparently installed two days earlier. (Ministry of Justice)
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.
“Intellectual property theft involving cutting-edge intelligence technology poses a serious threat to our national security,” he continued. “(The Department of Justice) 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 plugged into a USB port on the back of a television on September 30 in a conference room used for “highly confidential” discussions involving proprietary research, product plans and business opportunities, prosecutors said.
The device, hidden in toilet paper, was apparently installed two days earlier.
OpenAI told FOX Business that its surveillance countermeasures technical team discovered the device during a search of the conference room on September 30.
The company said it had evidence that 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, several times near the conference room before the device was discovered, despite not having permission to access the room, according to the complaint.
Prosecutors said Alfozan also sought information about OpenAI’s buildings, meeting rooms, calendars, executive locations and external partner meetings.
A chatbot account associated with Alfozan’s spouse that shared credentials with his account submitted prompts about building and hiding equipment, including a continuous audio recorder, Wi-Fi connectivity, live listening and encrypted storage, authorities said.
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On Oct. 5, surveillance footage showed Alfozan entering the conference room and appearing to look behind the television where the device had been hidden, according to prosecutors. (Ministry of Justice)
The account also allegedly submitted prompts with details matching the device later found on OpenAI.
On Oct. 5, surveillance footage showed 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 found a second, similar recording device in a bag that Alfozan had left unattended in another room, along with his wallet and identification, the DOJ said.
“We used our models to understand the device and its origin, identifying that a specific employee had installed it a few days earlier,” OpenAI said in a statement.
The company said it took the matter to the FBI and found no indication that Alfozan improperly accessed or exfiltrated model weights, source code or customer data. He has since been fired.
OpenAI told FOX Business it coordinated with the FBI on the timing of Alfozan’s termination to avoid disrupting the investigation. Between the discovery of the device on September 30 and his arrest on October 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 fired the day of his arrest.
Amy Kremer, president of Humans First, told FOX Business the allegations highlight concerns about insider threats to companies developing advanced AI technology.
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OpenAI said it took the matter to the FBI and found no indication that Alfozan improperly accessed or exfiltrated model weights, source code or customer data. (Omar Marques/SOPA Images/LightRocket via Getty Images)
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“If these companies want to make Americans believe that winning the AI race is a national security imperative, securing their own labs must be a fundamental requirement,” Kremer said. “That means meaningful background checks, scrutiny of ties to foreign governments, strict controls on access to sensitive research, and ongoing monitoring of insider threats.”
Kremer added: “These allegations must be fully investigated. 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 first appearance in federal court 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.
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