On Monday, a court granted the US government's request to deny release of a former OpenAI engineer accused of bugging a top-secret conference room to steal the frontier lab’s secrets.

In a court filing Sunday, US attorney Craig Missakian argued that Abdulrahman Alfozan must continue to be detained while the US makes its case that Alfozan brazenly spied on OpenAI, either for his own personal business gain or to benefit the Kingdom of Saudi Arabia.

Evidence showed that Alfozan had been chatting with a member of the KSA royal family on WhatsApp, while pursuing opportunities to permanently move back to Saudi Arabia during the country's biggest AI push yet, the government argued. Shortly before his arrest, the FBI found he accessed a folder called "Saudi Gov Docs" on his iPhone, where he also allegedly stored photos of a second bug he planted in the offices.

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Following a string of incidents where AI models hacked websites and breached government systems during testing phases, the Federal Trade Commission is officially probing Anthropic and OpenAI over consumer harms, an insider told Axios.

On Wednesday, the FTC sent out civil investigative demands seeking a wide range of information from the AI firms on recent safety incidents.

The FTC did not respond to Ars’ request to review the subpoena demands. However, Axios’ source said the requests spanned more than 50 pages of questions and sought documents related to the incidents, internal security measures taken, and marketing materials that may suggest consumers were misled.

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It took OpenAI two days to notice that a recording device was hidden in a restricted executive conference room where leadership met to discuss highly confidential information, including technical progress, government engagements, and commercial partnerships.

Only those with special clearance are supposed to access that room. But the FBI believes the recording device was planted by Abdulrahman Alfozan, a 35-year-old engineer from Saudi Arabia, who became a permanent US legal resident in 2020. In a press release Tuesday announcing his arrest, the FBI alleged that chatbot logs and CCTV footage suggested that Alfozan—who worked as an OpenAI engineer for more than a year—sought to use the device to spy on OpenAI and risked leaking trade secrets in a way that threatened national security.

To conceal the USB device, Alfozan allegedly wrapped it in toilet paper, then plugged it into the back of a conference room television. The device was likely planted on September 28, and OpenAI found it on September 30 and quickly determined that its contents were encrypted, the FBI said. Days later, on October 5, OpenAI installed a camera in that conference room, and the CCTV footage allegedly showed Alfozan attempting to retrieve the recording device that same day.

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