AN ex-OpenAI engineer and alleged spy has pleaded not guilty following accusations he bugged his former employer’s HQ.
Abdulrahman Alfozan, 35, faces federal charges after bosses discovered a “sophisticated recording device” hidden behind a TV in their head office in late September.
The Saudi-national entered a plea of not guilty in a court to one charge of intercepting oral communications on Friday.
Alfozan did not speak except to state his name and age and affirm that he understood the nature of the charges against him.
Entering the packed courtroom, Alfozan reportedly waved toward his friends in the public gallery, reports.
If convicted he faces up to five years in prison, a fine of $250,000 and possible deportation.
Alfozan worked at from July 2025 until he was sacked and arrested by the FBI on October 9.
Director Kash Patel said Alfozan’s previous alleged the suspect‘s goal was to capture highly secretive information about the company’s product.
Prosecutors say the device, wrapped in toilet paper, was found inserted in a USB port on the back of a TV in an executive conference room.
The Justice Department noted that the conference room frequently hosted talks regarding sensitive technical, business, and strategic plans.
Officials at the firm identified Alfozan on security footage near the conference room on several dates between September 8 and September 29, prosecutors say.
On October 5, Alfozan was allegedly spotted on CCTV camera entering the conference room and checking behind the television where the recording device was inserted.
Around the same time, OpenAI security searched an unattended bag containing Alfozan’s wallet and ID and found a second recording device, prosecutors allege.
They further alleged that an AI chatbot associated with his spouse contained user prompts including “to build a continuous audio recorder,” “to improve audio and live listening” and “to encrypt the SF card.”
Alfozan has been remanded in custody since his initial arrest and was sent back to jail after the brief hearing.
The judge ordered Alfozan to next appear in court on November 17.
Alfozan’s case comes as AI companies in the states are making rapid advancements in developing agents, and as concerns grow about the potential theft of AI tech from those companies.
In June, President , in an executive order on AI innovation, said it was U.S. policy “to protect American ingenuity and intellectual property from exploitation and theft by adversaries; and to cultivate America’s advanced AI-enabled capabilities.”
Following the initial discovery, OpenAI said: “The FBI’s investigation is ongoing and we will continue to support their work.
“At this time, we have no indications of this individual inappropriately accessing or exfiltrating model weights, source code, or customer data.
“The employee was terminated.
“We take protecting our technology, data, and people seriously, and as a matter of national importance.
“Our security program is designed to protect against a wide range of threat actors, from insider risks to cybercriminals to nation states, and this case is an example of how AI can help address these sophisticated security threats.”
