Former OpenAI Engineer Pleads Not Guilty to Federal Wiretapping Charge

Abdulrahman Alfozan, a Saudi national and former OpenAI engineer, entered a not-guilty plea in San Francisco federal court on Friday to one count of illegally intercepting oral communications. The charge carries a maximum penalty of five years in prison and a $250,000 fine. Magistrate Judge Peter Kang ordered Alfozan to remain detained without bail and set the next hearing for November 17 [2].

The alleged operation

Prosecutors allege that on or around September 28, Alfozan placed a recording device wrapped in toilet paper inside a USB port on the back of a television in an executive conference room at OpenAI's San Francisco headquarters. The room was used for high-level confidential discussions about technical, business and strategic plans [1][3].

OpenAI's security team discovered the device. According to the Justice Department complaint, Alfozan had used a "productivity agent" to identify the meeting room frequented by executives [1]. Closed-circuit television footage showed Alfozan near the conference room on multiple dates between September 8 and September 29, and on October 5 he was allegedly recorded entering the conference room and checking behind the television where the device had been inserted [3].

Around the same time, OpenAI security searched an unattended bag containing Alfozan's wallet and identification and found a second recording device, prosecutors say [3]. An AI chatbot associated with Alfozan's spouse contained user prompts including "to build a continuous audio recorder," "to improve audio and live listening" and "to encrypt the SF card," according to the complaint [3].

Connections and travel plans

Alfozan, 35, has been a permanent legal resident of the United States since 2020 [1]. His start date at OpenAI is described differently across sources: the Financial Times reports he was an engineer at the company "since last year" [1], while court documents cited by The Sun state he worked there from July 2025 until his arrest in October [3]. He served as an engineering lead focused on AI agents and the company's data platform [2]. He is also listed as a venture partner at Raed Ventures, a Riyadh-based venture capital firm where Prince Khalid Bin Bader Al Saud, a member of Saudi Arabia's royal family, is also a venture partner [2].

Prosecutors say Alfozan had "frequent" contact on WhatsApp with an unnamed member of the Saudi royal family since at least last year and enjoyed "considerable support from a foreign government" [1]. Court documents state that Alfozan had booked a one-way flight to Saudi Arabia for himself, his wife and another family member for three days after his arrest date [1].

OpenAI response and broader context

OpenAI said there is no indication that customer data, source code or model weights—the parameters that determine how its systems operate—were stolen [1][3]. "At this time, we have no indications of this individual inappropriately accessing or exfiltrating model weights, source code, or customer data," the company said in a statement [3].

The case has amplified concerns that leading US AI companies are targets for international espionage seeking advanced technology and trade secrets [1]. On Thursday, three senior House Republicans called on Nvidia chief executive Jensen Huang to brief their committees after reports he was targeted by a Chinese espionage operation [1].

The indictment comes amid shifting US policy discussions about AI leadership, immigration and national security. President Donald Trump signed an executive order this year emphasizing protection of American intellectual property from theft by adversaries, while his administration has also moved to restrict visas for some highly skilled foreign workers [2].

Defence and next steps

William Pernik, Alfozan's attorney, has previously said the alleged activity is "totally out of character for him" and that his defence will "relentlessly investigate all evidence produced by the government in this case to understand what actually happened" [1]. At Friday's hearing, Alfozan did not speak beyond stating his name and age and affirming he understood the charges [3].