FBI weighs espionage case against former OpenAI engineer arrested over hidden microphone

The Federal Bureau of Investigation is determining whether to file economic espionage charges against Abdulrahman Alfozan, a former OpenAI engineer arrested in early October for hiding a recording device in an executive conference room.

A Wall Street Journal report from Saturday notes that investigators are reviewing if Alfozan obtained confidential information for the Saudi government. A law enforcement official said the probe considers whether he gathered data to offer to Saudi Arabia, even without a formal recruitment process. Authorities are also evaluating potential trade secret theft charges, though the investigation might not lead to further prosecution beyond his current federal charge of unlawfully intercepting communications. That offense carries a maximum sentence of five years.

Alfozan, a 35 year old Saudi national and U.S. permanent resident, allegedly concealed a small circuit board and microphone behind a television in a room used primarily by OpenAI executives. Prosecutors state he exchanged frequent WhatsApp messages with an unidentified member of the Saudi royal family in 2025 and 2026. The royal family member wrote, “Saudi needs you more then [sic] the US!” to recruit him for a national AI initiative. Alfozan replied, “100,” but indicated he would stay at OpenAI until his company shares vested.

The last known message occurred on October 5, the day Alfozan allegedly returned to retrieve the device. OpenAI security had already found and removed it, then alerted the FBI. Prosecutors disclosed that Alfozan purchased one-way tickets to Saudi Arabia via Istanbul for himself, his wife, and their three-month-old son. He was arrested three days before their planned departure. His wife and son later flew to Qatar on business class tickets bought by a Saudi military official. Defense attorneys identified the official as the wife's brother-in-law and stated that no military funds were used.

William Pernik, Alfozan's attorney, said he received no indication of additional charges. “We made it very clear that Mr. Alfozan will fight these charges and allegations in court, not in the press,” Pernik said. During an October 19 detention hearing, Magistrate Judge Alex G. Tse questioned a letter from the Saudi Consulate in Los Angeles offering to cover the full bail bond. “Even if I set it at $10 million?” the judge asked. “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 after determining Alfozan posed a high flight risk. OpenAI is currently determining what information the device captured and whether the incident represents corporate espionage or state-sponsored intelligence gathering, according to a person familiar with the internal review.

Alfozan’s next court appearance is scheduled for November 6.