FBI Weighs Espionage Charge For OpenAI Engineer

The Federal Bureau of Investigation is determining whether to file economic espionage charges against Abdulrahman Alfozan, a former engineer at OpenAI. The agency began this review after Alfozan was arrested earlier in October for placing a recording device in a secure area of the company.

Investigators are looking into whether Alfozan acquired confidential data to provide to the Saudi government. A law enforcement official told the Wall Street Journal that the team is analyzing if he shared information even without a formal recruitment order. The FBI is also reviewing potential trade secret theft counts, though the investigation may not lead to additional prosecutions.

Alfozan, 35, is a Saudi national and United States permanent resident. He allegedly hid a small circuit board and microphone behind a television in a conference room used by OpenAI leaders. He currently faces one federal charge for unlawfully intercepting communications. This offense carries a maximum prison sentence of five years. His next court date is set for November 6.

Prosecutors allege that Alfozan exchanged frequent WhatsApp messages with an unnamed member of the Saudi royal family during 2025 and 2026. The royal family contact reportedly tried to recruit him for a Saudi artificial intelligence project. One message read, “Saudi needs you more then [sic] the US!” Alfozan replied, “100,” but said he would stay at OpenAI until his stock options vested. The last known exchange happened on October 5, the day he went back to get the hidden device.

OpenAI security staff found and removed the device before Alfozan returned. They then notified the FBI. Prosecutors noted that Alfozan bought one-way flights to Saudi Arabia via Istanbul for himself, his wife, and their three-month-old son. Officers arrested him three days before the scheduled departure. His wife and son later flew to Qatar on business-class tickets bought by a Saudi military official. Defense attorneys stated the official was the wife's brother-in-law and that no military funds were used.

During a detention hearing on October 19, US Magistrate Judge Alex G. Tse reviewed a letter from the Saudi Consulate in Los Angeles. The consulate offered to pay Alfozan's entire bail bond. Judge Tse questioned the offer, asking, “Even if I set it at $10 million? I find that problematic. Seems like a blank check. ‘We’re gonna pay whatever the court wants to make sure he gets out.’” The judge denied bail, citing a high flight risk.

Alfozan's attorney, William Pernik, said his client has no indication of new charges. Pernik stated, “We made it very clear that Mr. Alfozan will fight these charges and allegations in court, not in the press.” OpenAI is currently analyzing what data the device might have captured. The company is deciding if the incident was corporate espionage or state-sponsored intelligence gathering.