OpenAI security team was alarmed after they found a sophisticated recording device hidden inside their office in San Francisco. The AI firm and federal prosecutors said that a Saudi Arabian employee was arrested on October 9.
The accused has been identified as Saudi national Abdulrahman Alfozan. According to the US Department of Justice, OpenAI's security team found the device late last month near the conference room.
Alfozan, a 35-year-old engineer who had been working for the company since July 2025, was arrested after the CCTV camera analysis made it apparent that he visited 'near' the conference room several times despite having no authorisation to participate in the meetings located there.
While speaking to news agency AFP, OpenAI said, "We discovered a sophisticated recording device that was hidden inside one of our offices" and "referred the matter to the FBI."
Alfozan reportedly wrapped a USB device in toilet paper and plugged it into a television located in an "executive conference room," according to a Justice Department statement.
The DOJ stated that Alfozan used a "productivity tool" to search for more information about OpenAI's office buildings, meeting rooms, calendars, schedules and people's locations.
The DOJ has also found a chatbot account linked to Alfozan's spouse, which allegedly contained queries related to remote audio recording and encrypting memory cards.
In the DOJ statement, Director of National Intelligence Jay Clayton said, "This serious situation underscores why winning the global super intelligence race is a national security prerogative."
"The intelligence community remains committed to safeguarding America's cutting-edge intellectual property from foreign threats," Clayton added.
The AI firm said that it had evidence confirming the employee's intention to deploy other recording devices in sensitive locations around its offices to surreptitiously record meetings.
The incident raised longstanding concerns around the AI race, which has made the leading AI labs a target for industrial espionage or foreign nations trying to access technical secrets.