Federal prosecutors in California have charged a former OpenAI engineer with illegally intercepting oral communications after authorities discovered a covert audio recording device in one of the company’s San Francisco conference rooms. The criminal complaint, filed in U.S. District Court for the Northern District of California and unsealed on Tuesday, alleges that Abdulrahman Alfozan, a Saudi national and an experienced Silicon Valley engineer, planted the device in a conference room used for executive meetings and government briefings.

The device, about the size of a thumb and concealed within a rolled piece of toilet paper, was found on September 30 by OpenAI’s security team plugged into the back of a television in the room. According to court documents, the company then used its own artificial intelligence tools to identify Alfozan as the individual responsible for placing the device there. OpenAI subsequently terminated his employment and referred the case to the Federal Bureau of Investigation.

Alfozan, who holds permanent U.S. residency since 2020, was hired by OpenAI in July 2022. His background includes a master’s degree in data science from the University of California, Berkeley, and previous engineering roles at Meta, as well as internships at Akamai Technologies, SAP, and Microsoft. He also worked as a founding engineer at Nash, a San Francisco-based startup, and holds a venture partner position at RAED Ventures, a Riyadh-based venture capital firm with ties to Saudi Arabia’s royal family.

The complaint states that the recording device was a commercially available microcontroller equipped with a detachable camera sensor and microphone, retailing for approximately $24. An investigation of the device’s microSD card revealed no recovered files. Prosecutors detailed numerous AI-generated prompts submitted by Alfozan that focused on conceiving and programming a discreet audio recording setup, including instructions on continuous recording, speech-activated triggers, wireless connectivity, and data encryption.

Further inquiries made by Alfozan into company meeting spaces—reserved exclusively for executives and their assistants—also drew scrutiny. While no security cameras recorded the actual installation of the device, other surveillance footage captured Alfozan near the conference room around the time the device was placed. After a camera was installed in early October, additional footage reportedly shows him inspecting behind the television. Around the same period, Alfozan, his wife, and a family member had booked one-way flights to Saudi Arabia.

The Justice Department charged Alfozan on October 9 with illegally using an electronic device to intercept oral communications. Alfozan’s attorney, William Pernik, has denied allegations of foreign espionage, emphasizing that his client was charged solely with violating federal recording laws. Pernik also characterized the accusations as “wholly out of character” and noted that Alfozan’s travel plans to Saudi Arabia had been arranged prior to the incident. He stressed that Alfozan has strong ties to the community and does not pose a flight risk.

The case comes amid heightened concerns within the U.S. government about protecting intellectual property and sensitive information in the burgeoning artificial intelligence sector. Jay Clayton, director of national intelligence, underscored the situation as highlighting the national security imperative of maintaining technological leadership. The current administration has declined calls for restrictive AI regulations, arguing that such measures could inhibit economic competitiveness despite warnings from industry leaders.