A federal grand jury indicted former OpenAI engineer Abdulrahman “Abdul” Alfozan on 27 October for felony interception of oral communications, the San Francisco Chronicle reported, citing a court filing. Prosecutors allege that Alfozan, 35, installed a listening device in a conference room at OpenAI’s San Francisco headquarters. The indictment in the US District Court for the Northern District of California brings a formal felony charge in a case that began with a criminal complaint.
Key points
- The indictment alleges interception of communications concerning OpenAI’s business operations from approximately 28 September to 5 October.
- If convicted, Alfozan faces up to five years in prison, a $250,000 fine and three years of supervised release.
- A federal judge has ordered Alfozan held without bail pending trial after prosecutors argued that he might flee.
The charge concerns an OpenAI conference room
The indictment alleges that Alfozan intentionally used electronic devices to intercept at least one oral communication concerning OpenAI’s operations during the period from approximately 28 September to 5 October. According to the criminal complaint described by the Chronicle, a device wrapped in toilet paper was concealed behind a television in a room frequently used for confidential discussions of research, business plans and government partnerships. Prosecutors described the device as encrypted.
The indictment also seeks forfeiture of the recording devices and associated hardware if Alfozan is convicted, the Chronicle reported. Federal prosecutors put the maximum penalty at five years’ imprisonment and a $250,000 fine, followed by three years of supervised release. Those are potential penalties on conviction, not penalties imposed by the grand jury’s decision to charge him.
FBI agents arrested Alfozan in Millbrae on 9 October. Authorities said a security sweep had uncovered the device a little more than a week earlier, according to the Chronicle. An earlier AI Affairs report covered his arrest and the initial charge over the hidden recorder. The grand jury’s action takes the prosecution beyond that initial complaint.
Alfozan’s detention and the Saudi connection
Alfozan is a Saudi national who had worked at OpenAI since July 2025 and was fired after his arrest, the Associated Press reported through ABC7. Prosecutors say security cameras recorded him entering an executive conference room he was not authorised to access and checking behind its television. OpenAI has said the recorder was designed to evade detection and had encrypted audio-monitoring capabilities. Those descriptions are the allegations and claims of the prosecution and the company, respectively.
At a 19 October detention hearing, federal judge Alex Tse ordered Alfozan held without bail pending trial, citing a significant risk that he would flee, CNBC reported. Prosecutors had argued that his wife and young son had left the United States after his arrest and that he had resources and support available in Saudi Arabia. The Saudi Consulate in Los Angeles offered to pay his full bail. Tse questioned how that offer would protect the US government’s interest in ensuring Alfozan remained available for trial. AI Affairs previously reported the judge’s refusal to release him.
William Pernik, Alfozan’s lawyer, argued that his client had substantial ties to the United States. Alfozan had a naturalisation interview scheduled for the following month, his lawyers said, and was willing to offer about $1 million in a US investment account as security for his release. Pernik also argued that the family had planned travel to Saudi Arabia for Alfozan’s paternity leave before the alleged installation of the device. Prosecutors said Saudi officials had purchased replacement tickets that let his wife and son depart sooner after his arrest.
Prosecutors describe WhatsApp messages in 2025 and 2026
In a detention filing, prosecutors said Alfozan had communicated frequently on WhatsApp with a member of the Saudi royal family during 2025 and 2026. They said the person repeatedly tried to recruit him for an AI venture in Saudi Arabia and asked when he would leave OpenAI. According to prosecutors, Alfozan said he would remain until his stock vested. The prosecutors’ filing did not say the royal family member had directed him to install a recorder or take information from OpenAI, CNBC reported.
Alfozan’s lawyer objected at the detention hearing to what he called speculation and stereotypes about immigrants’ loyalty. Pernik said after the hearing that he disagreed with the decision to keep his client in custody and intended to pursue the issue. Tse ordered Alfozan to return to court on 6 November.
