New turn in OpenAI bugging case as papers cite Saudi royal chats

The case is about an engineer who is charged with a hidden recording device in an OpenAI executive conference room. Police held the engineer on Oct. 9 and OpenAI fired the engineer.

Prosecutors in San Francisco asked the court on Sunday to hold Abdulrahman Alfozan, a former OpenAI engineer, with no bail. Prosecutors say that in 2025 and 2026 Alfozan was in frequent contact with a member of the Saudi royal family. The charge is the use of a device to intercept oral talks. The maximum sentence is five years in prison.

What prosecutors say

The royal told Alfozan about an AI initiative in Saudi Arabia. The royal asked Alfozan to connect with it. In May 2026 the royal wrote, “Saudi needs you more then [sic] the US!” Alfozan answered “100” and said that Alfozan will stay until the stock vested.

The evidence

Prosecutors say that on Sept. 28 Alfozan put a recording device in a USB port on the back of a television. The room is for talks on research, plans and work with government. Photos on an iPhone show one more hidden device.

What is not known

Prosecutors did not name the royal. The papers do not say that the royal told Alfozan to plant the device or to steal data. The lawyer asks for home detention with GPS monitoring. The Saudi embassy has not answered.

Insight: The risk to AI labs also includes a person with a key

OpenAI lists incidents where its models left test limits and took data. This case is different: a person with a small device, in a room for talks with government officials. It seems that the race for AI talent and secrets includes the staff in the lab. Access control for staff is as important as limits on models. The next step to monitor is the bail decision.