Hidden behind a TV: How OpenAI uncovered alleged spying attempt inside its office

Washington: The FBI has arrested a 35-year-old engineer at ChatGPT maker OpenAI for allegedly installing a sophisticated recording device in a company conference room in an apparent attempt to capture sensitive discussions about its artificial intelligence technology secretly.

The accused, identified as Abdulrahman Alfozan, a Saudi national, was taken into custody on Friday, a week after the company discovered the concealed device at its office, according to a criminal complaint filed in a federal court in San Francisco.

Federal investigators allege that Alfozan secretly placed the device inside an executive conference room, despite having no authorisation to enter the area or attend meetings held there.

Although the criminal complaint does not name OpenAI, the company separately confirmed that it had discovered a “sophisticated recording device that was hidden inside one of our offices," and subsequently alerted the FBI.

OpenAI said the employee had been dismissed following an internal investigation that helped identify the person responsible for installing the device.

“We used our models to understand the device and where it had come from, identifying that a specific employee had planted it a few days earlier. We referred the matter to the FBI, and we’re grateful to the agents and prosecutors who moved quickly to make an arrest. The FBI’s investigation is ongoing and we will continue to support their work,” an OpenAI spokesperson said.

The company, however, said there was no evidence so far that its proprietary AI models, source code or customer information had been compromised.

“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,” the statement said.

Recording device concealed in toilet paper behind television

According to the FBI complaint, the recording device was discovered on September 30 inside an executive conference room.

Investigators said the equipment had been wrapped in toilet paper and connected to a USB port on the back of a television, apparently to conceal its presence.

The company described the equipment as sophisticated and designed to avoid detection, with advanced encryption and audio monitoring capabilities.

Investigators believe the device was intended to secretly record conversations taking place inside the room.

OpenAI also said it had uncovered evidence suggesting that the accused planned to install additional listening devices in other areas of the office building to record meetings.

However, the criminal complaint does not establish what Alfozan intended to do with any information that might have been collected.

CCTV footage raises suspicion

Investigators examined surveillance recordings from the company's offices after the device was discovered.

Although the executive conference room did not have a security camera when the device was allegedly installed, footage from other parts of the building showed Alfozan near the room on almost a dozen occasions during September.

According to the complaint, the engineer had no authorisation to access the conference room or participate in meetings conducted there.

Following the discovery, the company installed a security camera inside the room.

The newly installed camera subsequently recorded Alfozan entering the conference room and examining the area behind the television where the recording device had been concealed, according to the FBI.

Federal investigators also alleged that the engineer had used a workplace productivity tool to repeatedly search for information about the company's office buildings and meeting facilities.

His inquiries reportedly included building addresses, conference room locations, room capacities and meeting calendars.

Authorities believe these searches could be relevant to the investigation into the suspected surveillance operation.

Second recording device discovered in unattended bag

The investigation took another turn when OpenAI employees discovered an unattended bag belonging to Alfozan in a separate room shortly before his arrest.

According to the complaint, the bag contained his wallet, identification documents and another recording device similar to the one found behind the conference room television.

The discovery added to investigators' concerns that the accused may have been planning to place recording equipment in multiple locations.

However, authorities have not established publicly whether any sensitive conversations were successfully recorded or whether information was transmitted outside the company.

US Justice Department raises national security concerns

The arrest has prompted concerns among US authorities about the potential theft of sensitive information involving advanced artificial intelligence technology.

US Attorney General Todd Blanche described the alleged incident as a serious threat to national security.

“This alleged attempt by a Saudi national to steal sensitive communications from OpenAI was taken extremely seriously. Theft of intellectual property involving cutting-edge super intelligence technology poses a serious threat to our national security,” Blanche said in a statement on X.

The case comes amid growing competition among technology companies developing increasingly powerful artificial intelligence systems, with governments paying closer attention to the security of proprietary AI research and infrastructure.

Engineer appears in federal court

Alfozan made his initial appearance before a federal court on Tuesday.

He has been charged with using or attempting to use an electronic, mechanical or other device to intercept oral communications.

The case is being investigated by the FBI, with prosecutors examining the circumstances surrounding the installation of the recording equipment and the accused's alleged attempts to access restricted meeting spaces.

It was not immediately clear whether Alfozan had appointed a lawyer to represent him or whether an attorney had issued a statement on his behalf.

He is scheduled to appear in court again on October 19.

OpenAI said it would continue cooperating with federal investigators as the inquiry progresses.

The company has maintained that there is currently no indication that its AI model weights, source code or customer data were improperly accessed or removed.

The allegations against Alfozan have not been proven in court.