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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Safety researchers continue to warn that a large volume of AI-generated explicit content is spreading unchecked, while regulators do little to meaningfully stop it.

This non-consensual content is commonly shared in text and direct messages or stored in private clouds where it’s less likely to be detected or reported, a Google co-authored study of Internet users across the United States, Australia, and the United Kingdom found this July. That’s why the “most critical intervention point” remains at the source: the harmful AI tools used to make the fake sexual images, Google researchers concluded.

Yet red-teaming in recent months suggests that as some of the leading AI image generators from Google and OpenAI become more capable, they may be getting worse at blocking explicit outputs.

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In a bankruptcy proceeding that kicked off yesterday, Disney has offered to buy some of the technology that powers the controversy-plagued chatbot Character.AI.

Disney is willing to pay $20 million for “a non-exclusive perpetual license” of certain Character Technologies intellectual property, the chatbot maker said in a press release that did not go into much further detail on which assets Disney wanted.

The move may be surprising. In September 2025, Disney joined others in publicly criticizing Character.AI for stealing content and harming kids. Specifically, Disney sent a strongly worded cease-and-desist letter that accused Character Technologies of weaponizing Disney characters “in a way that could damage its brand long term,” Axios reported.

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Likely in the next few weeks, a federal judge will decide if Donald Trump can become the first president to personally profit from selling early access to government information in his social media posts.

At a hearing Wednesday, Department of Justice civil attorney Brantley Mayers argued that there was no conflict whatsoever with Trump charging up to $100,000 monthly for instant API access to Truth Social posts that often break news from his administration.

Trump is the largest stakeholder and majority owner of Trump Media & Technology Group, the parent company that owns Truth Social, and the value of the API access comes largely from Trump’s role as president.

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After pleading guilty, a 54-year-old North Carolina man, Michael Smith, was sentenced to 18 months in prison for using artificial intelligence to generate songs for a scheme that stole millions from music streaming platforms.

In a press release Tuesday, the US Department of Justice said that Smith is the first American criminally charged with AI-assisted streaming fraud.

First charged in 2024, Smith successfully ran the scheme for seven years without detection.

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One of Donald Trump’s biggest goals as president is to increase domestic manufacturing and reshore supply chains so that the most in-demand technologies in the world can be 100 percent made in the United States.

By executive order last December, he launched his “Genesis Mission,” an ambitious plan seeking to leverage US dominance in AI to maintain or seize an edge in advanced robotics, biotechnology, semiconductors, and nuclear technologies. According to Trump, that plan works best with self-sustaining supply chains. Not even neighboring countries or longtime allies should be relied upon to manufacture a single component of any US product in his ideal world.

The Consumer Technology Association (CTA) has long warned that Trump’s reshoring goals are not grounded in reality, but only recently has America’s largest technology trade association attempted to estimate what it would cost businesses and consumers to follow through on Trump’s plan.

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