FBI reviews adding spy charge to OpenAI engineer's case

The FBI is evaluating whether to file an economic espionage charge against Abdulrahman Alfozan, a 35-year-old Saudi national and former OpenAI engineer. According to a law-enforcement official speaking to The Wall Street Journal, the investigation centers on whether Alfozan stole company data for the Saudi government. This would apply even if he was not formally recruited by a state intelligence agency.

Alfozan was arrested earlier this month on federal charges. Prosecutors accuse him of hiding a thumb-sized recording device behind a television in a San Francisco conference room. The device contained a microphone and a camera and was wrapped in toilet paper. The room was primarily used by OpenAI executives. He faces a maximum sentence of five years in prison for violating a federal recording statute.

Federal prosecutors detailed Alfozan's contacts in a court filing. They stated he maintained frequent WhatsApp communications with an unnamed member of the Saudi royal family throughout 2025 and 2026. The family member reportedly attempted to recruit Alfozan for a new Saudi AI initiative. One message quoted in the filing read, "Saudi needs you more than [sic] the US!" Alfozan allegedly replied with the number "100" but noted he would not leave until his OpenAI stock vested.

The timeline of the alleged bugging aligns with these communications. Prosecutors say the last contact occurred on 5 October. That is the day Alfozan allegedly visited the conference room to check on the device. OpenAI discovered the equipment during a security sweep on 30 September. The company notified the FBI after removing the device.

Alfozan is a legal permanent resident of the United States. He studied computer science at the Massachusetts Institute of Technology and previously worked at Meta. He joined OpenAI in July 2025. His lawyer, William Pernik, said the defense has not yet received notice of any additional charges from the government.

A San Francisco federal judge ordered Alfozan held without bail last week. Judge Alex Tse cited a risk that the defendant might flee. The judge described the Saudi Consulate in Los Angeles's offer to pay the bail amount in full as problematic. The next court hearing is scheduled for 6 November.

OpenAI is currently determining if the incident represents corporate espionage or state-sponsored spying. A source familiar with the probe told the Wall Street Journal that the investigation may not result in further charges. Neither the Saudi embassy in Washington nor OpenAI provided a comment on the case.