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NewslettersFortune Tech

The OpenAI bugging case had its (first) day in court

Alexei Oreskovic
By
Alexei Oreskovic
Alexei Oreskovic
Editor, Tech
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Alexei Oreskovic
By
Alexei Oreskovic
Alexei Oreskovic
Editor, Tech
Down Arrow Button Icon
October 20, 2026, 5:01 AM ET
Updated October 20, 2026, 5:01 AM ET
Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images
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Good morning. Now that Elon Musk has promised one share of SpaceX for every American child, and Anthropic has pledged 5% of its shares to a public benefit fund, other tech companies might be thinking about how to start “giving back.”

An iPhone Duo in every pot could be a nice gesture by Apple. And maybe Google could lift the storage limits on our Gmail accounts?

Today’s tech news below. —Alexei Oreskovic

Thoughts? Suggestions? Hot tip? Drop me a line.

THE BIG STORY

Ex-OpenAI engineer accused of bugging office to stay in jail after court hearing

A federal judge ordered a former OpenAI engineer accused of bugging an executive conference room to stay in jail on Monday, after questioning whether a $1 million bond the Saudi government offered to guarantee would bring him back if he fled.

Abdulrahman Alfozan, the 35-year-old former OpenAI engineer, appeared in court in San Francisco on Monday wearing an orange jumpsuit and white face mask while escorted by two U.S. marshals. Magistrate Judge Alex G. Tse said a $1 million bond had to be weighed against the possibility that Alfozan “potentially has access to much greater wealth.”

“Once he leaves, there’s no getting him back, and that’s why this is a bigger case,” Tse said in the courtroom Monday morning.

Alfozan has been in jail since the Federal Bureau of Investigation (FBI) arrested him on Oct. 9, alleging he planted the device in a conference room where executives, and sometimes government officials, discussed sensitive information.

Ahead of Monday's court hearing, both prosecutors for the federal government and the defense filed court documents revealing new details about the case including one-way tickets for a flight to Saudi Arabia that Alfozan allegedly booked for himself, his wife, and 3-month-old son, as well as WhatsApp communications that Alfozan allegedly had with a member of the Saudi royal family.

According to Alfozan's lawyer, Alfozan often books one-way tickets to allow for scheduling flexibility around his work schedule. In fact, 70% (96 of 138) of the airline bookings “in his email since January 2021 were one-way tickets," the defense motion says. 

“His plan was always to return to the Bay Area, where his home, his career, and his community are,” the defense motion says. “The evidence shows that Mr. Alfozan planned to accompany his wife and son to Saudi Arabia for his paternity leave and then return.” —Emily Forlini and Wen Shao

THE BLIND BOX

“If you don’t have a coup attempt every few years, you’re not hiring strong enough leaders.”

Read the full story here.

THE RUNDOWN

—Another Apple October surprise. First touchscreen MacBook reportedly in the offing.

—DHS vs DeepSeek. All U.S. civilian agencies ordered to remove the Chinese AI tech.

—New MiniMax model. Chinese AI company claims M3.1 Flash brings a "generational leap."

—Town, the latest buzzy agentic AI assistant a la Muse and Instinct, raises $108 million four months after launch.

—‘Miami-Dade County is not Vice City’: GTA 6 is taking over Miami—and dividing the county

—Management or "bot-sitting"? AI agents are changing the workplace

THE PARTING SHOT

Commuting to San Francisco from the East Bay today can be done by car, ferry, or by BART. But electric air taxis could soon offer a new option that has better views and cuts the travel time in half. Archer Aviation gave a peek of what that might look like with a series of demo flights in the Bay Area last week.

This is the web version of Fortune Tech, a daily newsletter breaking down the biggest players and stories shaping the future. Sign up to get it delivered free to your inbox.
About the Author
Alexei Oreskovic
By Alexei OreskovicEditor, Tech
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Alexei Oreskovic is the Tech editor at Fortune.

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