SAN FRANCISCO: A Saudi engineer who worked at OpenAI has been arrested on a federal charge after the company found a hidden recording device wrapped in toilet paper and plugged into the back of a television in an executive conference room, prosecutors said. Abdulrahman Alfozan, 35, was arrested on October 9 and appeared in court Tuesday on a charge of intercepting oral communications, which carries up to five years in prison. OpenAI fired him the day he was taken into custody.
According to the Justice Department, staff discovered the thumb-sized recorder during a security sweep on September 30 and determined it had been installed around September 28. Its storage was encrypted. Surveillance footage showed Alfozan near the room on several occasions despite having no authorization to enter it, and on October 5 a camera caught him walking in and checking behind the television.
PCMag reported that prosecutors described the case as a national security matter. The complaint alleges Alfozan used an internal productivity tool to look up building addresses, meeting rooms, executive calendars and the locations of leadership, and that a chatbot account tied to his spouse received prompts between September 24 and 30 about building, hiding and remotely accessing a recording device.
The same day he was filmed at the television, security staff opened a bag he had left unattended in a printer room and found his wallet, identification and a second recorder similar to the first. Prosecutors say he had also booked a one-way flight from San Francisco to Saudi Arabia, by way of Istanbul, for October 12, Gizmodo reported, citing Bloomberg. OpenAI has said it found no indication he accessed model weights, source code or customer data.
TechSpot identified the hardware as a Seeed XIAO ESP32-S3 Sense development board that retails for $13.99. OpenAI said its own AI models helped trace where the device came from and who had planted it before the company called in the FBI. A detention hearing is set for Monday, October 19, and no motive has been disclosed in public filings.
The arrest adds a physical-security chapter to a year of high-stakes disputes around the lab. Hypefresh has tracked Apple’s lawsuit against OpenAI over alleged theft of secret product data and Sam Altman’s $50 billion funding talks with Saudi Arabia, a reminder of how tightly the kingdom’s money and Silicon Valley AI labs now orbit each other. Trust inside the office has its own fault line, as the T-Mobile worker caught secretly transferring money from a customer’s account showed this year.
Alfozan joined OpenAI as an engineer in July 2025 after stints at Meta, an AI startup and a venture capital firm, and his LinkedIn lists him as a venture partner at Raed Ventures in Riyadh, according to Wired. Neither he nor a lawyer representing him has commented publicly. The FBI investigation continues, and the next public step is the hearing before Magistrate Judge Alex G. Tse in the Northern District of California.

