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Tuesday, October 27, 2026Local news for Sioux Falls and South Dakota.
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Espionage Review: FBI Examines Ex-OpenAI Engineer's Saudi Contacts

Federal investigators are weighing economic espionage and trade secret charges against Abdulrahman Alfozan, who is already charged with intercepting communications.

By Owen Fitzgerald ·

Illustration for: Espionage Review: FBI Examines Ex-OpenAI Engineer's Saudi Contacts
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Federal prosecutors are weighing additional charges against a former OpenAI engineer arrested this month after a listening device surfaced in a restricted conference room.

The FBI is considering whether to pursue economic espionage counts against Abdulrahman Alfozan, 35, according to a report published Saturday by the Wall Street Journal. Investigators are also reviewing potential trade secret theft charges, though the case may not produce further prosecutions. The current federal count, unlawfully intercepting communications, carries a maximum penalty of five years. Prosecutors allege Alfozan hid a small circuit board and microphone behind a television in a room used primarily by OpenAI executives. The company's security staff found and removed the device before notifying the FBI.

Alfozan is a Saudi national and a US permanent resident. His attorney, William Pernik, said he has received no notice that more charges are pending. "We made it very clear that Mr. Alfozan will fight these charges and allegations in court, not in the press," Pernik said.

Court filings describe frequent WhatsApp traffic in 2025 and 2026 between Alfozan and an unidentified member of the Saudi royal family. The relative allegedly pressed him to join a Saudi artificial intelligence program, writing, "Saudi needs you more then [sic] the US!" Alfozan replied "100" but said he planned to remain at OpenAI until his shares vested. Prosecutors place their last exchange on October 5, the same day Alfozan allegedly returned to the conference room for the device. Security staff had already taken it.

Prosecutors also noted that Alfozan bought one-way tickets to Saudi Arabia via Istanbul for himself, his wife and their three-month-old son, with departure set for three days after his arrest. His wife and son later flew business class to Qatar on tickets paid for by a Saudi military official. The defense said the official is the wife's brother-in-law, that no military money was used, and that Alfozan often books one-way flights.

At an October 19 detention hearing, US Magistrate Judge Alex G. Tse read aloud 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.'" Tse denied bail, finding that Alfozan could flee. His next court date is November 6. OpenAI is still determining what the device captured.

Source: The Jerusalem Post

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