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DNI Jay Clayton Says AI Espionage Is a Reality Companies Must Be Wary Of

Director of National Intelligence Jay Clayton told CNBC that commercial and state-sponsored AI espionage are realities, warning U.S. companies and government to guard against foreign attempts to close the AI gap.

AI News Feed · 2026-10-17 00:38

Clayton, who leads a new White House AI task force, said that is why the government is focused on hardening those systems and using its commitment to continue to lead to stay ahead of "those nefarious actors." He was asked about foreign spying in light of the recently revealed case charging Saudi national Abdulrahman Alfozan with allegedly installing a recording device in an OpenAI executive conference room. Alfozan has not been charged with espionage; the federal charge involves alleged interception of oral communications.

Alfozan was an OpenAI employee, and according to federal prosecutors, he had booked a one-way plane ticket to Saudi Arabia with his wife and another family member before his arrest. Clayton said the OpenAI incident shows the lengths people will go to try to supplant U.S. leadership or at least stay close to the United States in this emerging technology.

An ex-CIA official told CNBC this week, speaking on condition of anonymity to discuss non-public information, that the case is "probably the tip of the iceberg." Clayton said private-sector companies and the government need to be wary. "The short answer to your question is espionage, both commercial espionage, and I would say state-sponsored espionage, are realities," he said.

Clayton was appointed AI czar earlier this month. He said the task force's "very good" inaugural meeting at the White House on Thursday built on an accord signed by President Donald Trump and a number of AI leaders at the White House last month. Trump described the agreement, which includes industry pledges to police AI risks itself, as "morally binding." The task force established three subcommittees: one focused on reporting and response, another on assessing critical infrastructure and working with the private sector, and a third on law enforcement and responsibility, Clayton said.

Clayton reiterated that the Trump administration intends to stay ahead in the AI race. "We're not the only ones developing it. There are vectors in this technology that are coming from some of our known adversaries and competitors," he said. "The Chinese, the Russians, the Iranians, the North Koreans all have significant technical capability. We need to stay ahead of them."

Editor's Summary Clayton said foreign AI espionage, both commercial and state-sponsored, is a reality and warned companies and government to be wary. His remarks followed charges in an alleged OpenAI conference-room recording case and came as a White House AI task force began work. The task force has set up subcommittees on reporting, critical infrastructure and law enforcement.