FBI eyes spy charges for OpenAI engineer

The Federal Bureau of Investigation is evaluating whether to file economic espionage charges against Abdulrahman Alfozan, a former engineer at OpenAI. Alfozan was arrested earlier in October for allegedly placing a recording device in a restricted area of the company. A law enforcement official told The Wall Street Journal that investigators are determining if the former employee acquired sensitive information for the Saudi government, regardless of whether he was formally recruited.

Alfozan, 35, is a Saudi national and US permanent resident. He is currently charged with unlawfully intercepting communications, a federal offense carrying a maximum sentence of five years. Prosecutors are also reviewing potential trade secret theft counts, though they may not pursue additional cases. His attorney, William Pernik, stated that his client has not received notice of new charges. 'We made it very clear that Mr. Alfozan will fight these charges and allegations in court, not in the press,' Pernik said.

Federal prosecutors focus on Alfozan's communications with an unidentified member of the Saudi royal family. The two exchanged frequent WhatsApp messages in 2025 and 2026. The royal family member allegedly proposed a position in a Saudi AI initiative, writing, 'Saudi needs you more then [sic] the US!' Alfozan replied with the number '100' but indicated he would stay at OpenAI until his stock options vested. Their last known exchange happened on October 5. That same day, Alfozan allegedly returned to the conference room to collect the device. OpenAI security had already found and removed it, prompting the FBI notification.

Alfozan concealed a small circuit board and microphone behind a television in a room used by OpenAI executives. He bought one-way tickets to Saudi Arabia via Istanbul for himself, his wife, and their three-month-old son. He was arrested three days before the planned departure. His wife and son later flew to Qatar on business-class tickets purchased 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.

At an October 19 detention hearing, 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. '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, citing a high flight risk.

Alfozan's next court appearance is scheduled for November 6. OpenAI is currently analyzing data captured by the recording device. The company is assessing whether the incident constitutes corporate espionage or state-sponsored intelligence gathering, according to a person familiar with the internal review.