Federal Probe: FBI Weighs Espionage Charges for Ex-OpenAI Engineer

Federal authorities are determining if a former artificial intelligence engineer acted as an economic spy for a foreign government. The investigation centers on Abdulrahman Alfozan, a 35-year-old Saudi national and US permanent resident who was detained in early October. The Wall Street Journal reported the details of the inquiry on Saturday, citing a law enforcement official.

Alfozan is currently charged with unlawfully intercepting communications. Prosecutors are reviewing evidence to see if he stole trade secrets or gathered confidential information for the Saudi government, even if he was not formally recruited. They are also weighing separate charges for trade secret theft, though officials noted the case may not lead to additional prosecutions.

The alleged surveillance began with a small circuit board and microphone concealed behind a television. The device was placed in a conference room frequently used by OpenAI executives. Alfozan is accused of hiding the equipment to monitor internal discussions. He now faces up to five years in prison if convicted on the existing charge.

Prosecutors say Alfozan exchanged frequent WhatsApp messages with an unidentified member of the Saudi royal family in 2025 and 2026. The royal family member allegedly tried to recruit him for a Saudi AI initiative. One message read, “Saudi needs you more then [sic] the US!” Alfozan replied with “100” but stated he would stay at OpenAI until his stock options vested.

The last known message between the two occurred on October 5. On that date, Alfozan allegedly returned to the conference room to retrieve the device. OpenAI security staff had already found and removed the equipment before notifying the FBI. Alfozan had purchased one-way tickets to Saudi Arabia via Istanbul for himself, his wife, and their infant son. He was arrested three days before their scheduled departure.

His wife and son 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 no military funds were used. During an October 19 detention hearing, US Magistrate Judge Alex G. Tse questioned a letter from the Saudi Consulate in Los Angeles. The consulate offered to pay the full bail bond. Judge Tse called the offer “a blank check” and denied bail, citing a high flight risk.

William Pernik, Alfozan's attorney, said his client had not been informed of new potential charges. “We made it very clear that Mr. Alfozan will fight these charges and allegations in court, not in the press,” Pernik said. Alfozan is scheduled to appear in court again on November 6. OpenAI is currently analyzing the data captured by the device to determine if it constitutes corporate espionage or state-sponsored intelligence gathering.