A former OpenAI engineer accused of concealing an encrypted recording device inside an executive conference room received backing from the Saudi government, federal prosecutors alleged in court documents unsealed in California.
U.S. Magistrate Judge Alex G. Tse ruled Monday in San Francisco that 35-year-old Abdulrahman Alfozan must remain in federal custody pending trial, agreeing with prosecutors that the Saudi national poses a significant flight risk.
Alfozan, a lawful permanent resident who lived in the United States for 15 years, was arrested by the FBI on Oct. 9 and charged with using an electronic device to intercept oral communications. OpenAI terminated his employment following his arrest. If convicted, he faces up to five years in federal prison and a fine of up to $250,000.
Device Concealed Behind Television
According to court filings, Alfozan worked at the artificial intelligence firm for roughly one year, earning a base salary of $385,000 alongside a $2.2 million equity grant. Prosecutors allege that on Sept. 28, he installed a custom audio recording device into a USB port on the back of a television inside an executive conference room at OpenAI’s San Francisco office.
OpenAI staff discovered the bug, which had been wrapped in toilet paper, on Sept. 30 and alerted federal authorities. Investigators then installed a surveillance camera in the room. On Oct. 5, footage captured Alfozan entering the room and peering behind the television where the device had been located, according to the criminal complaint.
Federal prosecutors warned that Alfozan’s alleged surveillance threatened national security. Court filings noted that high-level OpenAI leaders held sensitive discussions with U.S. government officials in that room during the time the device was operating.
Investigators also stated that Alfozan used an AI chatbot account registered to his wife to research how to build continuous recorders, capture WAV audio files to memory cards, and encrypt the data.
Ties to Saudi Officials
In a detention memo filed ahead of Monday’s hearing, prosecutors asserted that Alfozan maintained close contact with an unnamed member of the Saudi royal family over WhatsApp for more than two years. The royal allegedly urged Alfozan to leave the U.S. to lead an AI initiative in the kingdom, messaging him in May, “Saudi needs you more then [sic] the US!” to which Alfozan replied, “100.” Alfozan noted he intended to wait until his company equity vested before leaving, according to court documents reported by CBS News.
Prosecutors also said a member of the Saudi military purchased one-way business-class airline tickets that took Alfozan’s wife and infant son out of the country on Oct. 10, the day after Alfozan’s arrest. Alfozan himself had been booked to fly to Riyadh on Oct. 12 on a scheduled parental leave, three days after the FBI took him into custody.
His wife told interviewing agents that her U.S. visa was expiring and that the family intended to relocate permanently to Saudi Arabia, according to court filings.
Defense Argues Client Is Not a Flight Risk
Alfozan’s defense attorney, William Pernik, argued that his client should be released with electronic monitoring and after surrendering his passport. Pernik pointed out that Alfozan learned the company found the bug more than a week before his arrest through internal notifications and public reports.
“If his intention was to flee, he would have done so at that time,” Pernik wrote in a court filing cited by Business Insider.
Pernik also argued that the one-way ticket was routine, noting that nearly 70 percent of Alfozan’s past travel reservations were booked as one-way itineraries.
Representatives for the Saudi government did not immediately respond to requests for comment. Federal authorities said the investigation remains ongoing, and prosecutors indicated that additional charges could follow.
