OpenAI Engineer Under Federal Review For Potential Economic Espionage

The federal government is reviewing whether to add economic espionage charges to the existing case against a former OpenAI engineer.

The Wall Street Journal reported on Saturday that the FBI is investigating whether Abdulrahman Alfozan obtained confidential information for the Saudi government. This review occurs even if he was not formally recruited to perform that task. Investigators are also weighing potential trade secret theft charges, though no additional prosecution is guaranteed.

Alfozan, a 35-year-old Saudi national and US permanent resident, is already facing a federal charge for unlawfully intercepting communications. He allegedly hid a small circuit board and microphone behind a television in a conference room used by OpenAI executives. The current charge carries a maximum prison sentence of five years. His next court appearance is set for November 6.

Prosecutors say Alfozan exchanged frequent WhatsApp messages with an unidentified Saudi royal family member during 2025 and 2026. The royal family member allegedly sought to recruit him for a Saudi artificial intelligence initiative, writing, “Saudi needs you more then [sic] the US!” Alfozan reportedly replied, “100,” while indicating he intended to stay at OpenAI until his company shares vested. Prosecutors state the last known exchange occurred on October 5, the same day Alfozan returned to the room to retrieve the device. OpenAI security had already found and removed the equipment, then notified the FBI.

Alfozan purchased one-way tickets to Saudi Arabia via Istanbul for himself, his wife, and their three-month-old son. He was arrested three days before their planned departure. Prosecutors note that his wife and son later flew to Qatar on business-class tickets bought by a Saudi military official. Defense attorneys argue the official is the wife’s brother-in-law, that no military funds were used, and that Alfozan frequently booked one-way flights.

During an October 19 detention hearing, US Magistrate Judge Alex G. Tse questioned a letter from the Saudi Consulate in Los Angeles offering to cover Alfozan’s bail. “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.’” Alfozan was denied bail after the judge determined he posed a significant flight risk.

Attorney William Pernik said he had received no indication that additional charges were being considered. “We made it very clear that Mr. Alfozan will fight these charges and allegations in court, not in the press,” Pernik said. OpenAI is currently examining what information the device may have captured to determine if the incident involved corporate espionage or state-sponsored intelligence gathering.