Saudi Engineer Accused of Bugging OpenAI Office Pleads Not Guilty

Alfozan, 35, was sent back to jail after appearing before Magistrate Judge Peter Kang, who ordered him to return to court on November 17. His lawyer declined to comment after the hearing, CNBC reported from the courtroom.

A grand jury indicted Alfozan on October 27 on a single count of interception of oral communications, according to court records cited by CNBC. The charge carries a maximum sentence of five years in prison. Prosecutors allege that on September 28 he placed a recording device in a television in an executive conference room at OpenAI's offices.

The case matters beyond a single workplace offence because of what prosecutors have said about its possible motive. In arguing last month that Alfozan should stay in custody, prosecutors wrote that the case raised "a concern for the national security of the United States" and that his motive could have been personal gain, help to a foreign government, or both, according to Khaleej Times' account of the filing. The complaint itself does not allege spying, and a later filing said the investigation was continuing and could lead to additional serious charges.

Alfozan has been held without bail since his arrest in early October. A federal judge, Alex Tse, ordered him detained on October 19 after finding a "significant" risk that he would not appear in court. "Once he leaves, there's no getting him back, the case goes away, and that is why this is a bigger case," Tse said, according to Khaleej Times.

Prosecutors told the court that Alfozan had bought a one-way ticket to Riyadh for October 12, and that his wife and baby left the United States on October 10, the day after his arrest, on tickets paid for by a Saudi military official. The United States and Saudi Arabia have no extradition treaty. His lawyer, William Pernik, disputed that he was a flight risk, saying Alfozan was working towards US citizenship and had a naturalisation interview scheduled for November 6, the date of Friday's hearing. The defence offered $1 million in assets to secure his release.

Alfozan is also a venture partner at Raed Ventures, a Saudi venture capital firm. His biography on the firm's website still says: "He currently serves as Engineering Lead at OpenAI, with a focus on AI Agents and the data platform." Prince Khalid Bin Bader Al Saud, a member of Saudi Arabia's royal family, is a venture partner at the same firm, CNBC noted.

Alfozan is next due in court on November 17.