OpenAI Ex-Engineer Accused of Bugging Executive Room Ordered Held in Custody

Federal magistrate judge Alex Tse ruled on Monday that former OpenAI engineer Abdulrahman Alfozan must remain in custody while awaiting trial on a charge of using a device to intercept communications. US prosecutors argued Alfozan is a flight risk, citing the Saudi consulate's offer to work with a bail bonds firm to help fund his release and his $385,000 salary and $2.2M profit-sharing package at OpenAI. Prosecutors alleged Alfozan communicated frequently via WhatsApp throughout 2025 and 2026 with an unidentified Saudi royal family member who was recruiting him to return to Saudi Arabia for a forthcoming AI initiative. Authorities also alleged the Saudi government bought a return ticket for his wife and infant son after his arrest, though attorneys said she left earlier on a flight booked personally by her brother-in-law, who works for the Saudi navy. OpenAI fired Alfozan earlier this month just before his FBI arrest after finding a covert audio recorder hidden in toilet paper behind a TV in an executive conference room in late September, plus a second device in an unattended bag. Authorities said it remains unclear what, if anything, was recorded because the device's data was encrypted, while also citing alleged AI chatbot logs about setting up listening devices and home electronics components. Defense attorney William Pernik maintained there is no evidence Alfozan spied for Saudi Arabia, stating the conference room was open to employees and the home electronics were for personal projects, including a smart cat litter box. Alfozan faces up to five years in prison on the current count, with his next court appearance scheduled for November 6. "There is a real threat here that once he leaves the case is over." — Federal Magistrate Judge Alex Tse