Law360 (October 13, 2026, 10:32 PM EDT) -- Federal prosecutors have arrested and charged a former OpenAI product team engineer in California federal court on allegations he hid a secret recording device inside toilet paper behind a TV in an executive conference room in order to capture confidential communications about the ChatGPT-maker's artificial intelligence technology.

The U.S. Department of Justice announced Tuesday that Abdulrahman Alfozan, 35, a national of the Kingdom of Saudi Arabia, was arrested Oct. 9 — the same day OpenAI fired the engineer — and made his initial appearance in federal court Tuesday. As of Tuesday afternoon, the criminal case docket was under seal.

"The Bay Area and Silicon Valley lead the world in developing tomorrow's technology, and our Office will continue to stand at the forefront of protecting that American innovation," said U.S. Attorney Craig H. Missakian for the Northern District of California in a statement. "For us it is a matter of national security."

Alfozan has worked as an OpenAI engineer on its product team since July 2025, according to OpenAI. But prosecutors allege that on Sept. 30, OpenAI personnel discovered a hidden audio recording device plugged into a USB port on the back of a television in an OpenAI executive conference room in San Francisco. The device was discovered during a routine sweep of the room, where executives met regularly to discuss highly confidential information, including proprietary research, product plans and business-development opportunities, the DOJ said.

OpenAI determined that the device, which was hidden in toilet paper, was installed a few days earlier, and its contents were encrypted, according to the DOJ.

OpenAI's closed-circuit television footage inside the office revealed that Alfozan was near the executive conference room on multiple occasions before the device was discovered, even though he had no authority to access or participate in meetings in the executive conference room, according to the government.

OpenAI also obtained evidence revealing that Alfozan intended to deploy additional recording devices in other sensitive work areas to surreptitiously record confidential meetings, according to the company. After OpenAI discovered the device, it closed off the room, conducted additional security sweeps, and reached out to the FBI, the company said.

Between discovering the first recording device on Sept. 30 and Alfozan's arrest on Oct. 9, the company took additional steps to contain the risk while its investigation continued, including confiscating his work devices, according to OpenAI.

An OpenAI spokesperson said in a statement on Tuesday that the company used its own AI models to understand the recording device that it found in the TV, where it came from and who had likely planted it.

"We referred the matter to the FBI, and we're grateful to the agents and prosecutors who moved quickly to make an arrest," the statement says. "The FBI's investigation is ongoing, and we will continue to support their work."

OpenAI added that currently the company has not discovered any evidence suggesting that Alfozan was able to inappropriately access or exfiltrate OpenAI model weights, source code or customer data.

"We take protecting our technology, data, and people seriously, and as a matter of national importance," the OpenAI statement says. "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."

According to prosecutors, before Sept. 28, Alfozan used an AI productivity tool to research OpenAI's building addresses, meeting rooms, meeting-room capacities and calendars.

The government also claims that a chatbot account associated with Alfozan's spouse submitted prompts between Sept. 24 and Sept. 30 related to building, customizing and installing audio recording devices, as well as prompts explaining how to test, obfuscate and remotely access such devices.

The inquiries at issue included prompts regarding "build[ing] a continuous audio recorder," "customiz[ing] Wi-Fi ... connectivity," "improv[ing] audio and live listening," and "encrypt[ing] the SD card," prosecutors said.

The same chatbot account also submitted prompts specifically related to the device that was found in the conference room, and on Oct. 5, Alfozan entered the executive conference room and appeared to look behind the television where the recording device was previously discovered, the government alleges.

That same day, OpenAI security personnel found an unattended bag containing Alfozan's wallet and ID and a recording device similar to the one found behind the TV.

If convicted, Alfozan faces a maximum five-year prison sentence and a $250,000 fine, followed by three years of supervised release, according to the government.

FBI Director Kash Patel said in a statement Tuesday that protecting the nation's artificial intelligence is essential to safeguarding the United States' economic strength and national security, and the FBI views that mission as one of its highest counterintelligence priorities.

"We will continue working closely with our partners across the U.S. government and private sector to keep American businesses and citizens safe and to ensure our country maintains its competitive edge," Patel said.

Director of National Intelligence Jay Clayton added that the allegations against Alfozan underscore why winning the global artificial intelligence race is a national security prerogative.

"The intelligence community remains committed to safeguarding America's cutting-edge intellectual property from foreign threats," Clayton said.

OpenAI didn't immediately respond to requests for comment Tuesday and contact information for Alfozan wasn't immediately available Tuesday.

The government is represented by Nicolas Parker of the U.S. Attorney's Office for the Northern District of California and Kate Tagert of the National Security Division's Counterintelligence and Export Control Section.

Counsel information for Alfozan wasn't immediately available.

The case is U.S. v. Abdulrahman Alfozan, case number 3:26-mj-71329, in the U.S. District Court for the Northern District of California.

--Editing by Michael Watanabe.

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