Huang, who leads the world's most valuable AI chipmaker, acknowledged the relationship in a statement to employees on Sunday. The woman, Alice Huang (no relation to the CEO), is a Chinese citizen and senior executive at Megaspeed, one of Nvidia's major customers. U.S. intelligence officials reportedly believe she was gathering information for the Chinese government. China has denied the allegations.

The disclosure has thrust the Santa Clara-based company into a national security controversy, drawn attention from the White House, and raised questions about Huang's influence over President Donald Trump and the administration's decisions on restricting AI chip sales to China.

Nvidia's board said it would conduct an independent review of the matter. The company did not provide a timeline for the investigation or specify who would lead it.

The stakes are difficult to overstate. Nvidia's advanced semiconductors are central to the global artificial intelligence boom and are among the most sensitive technologies in the U.S.-China rivalry. Washington has spent years tightening export controls on high-end chips to Beijing, citing national security concerns, and any suggestion that a foreign intelligence operation may have touched the company's leadership could intensify scrutiny of those policies.

Megaspeed's status as a major Nvidia customer adds another layer of concern. The company has been a significant buyer of Nvidia's hardware, and Alice Huang's senior role there would have given her access to information about procurement and deployment of advanced chips.

Huang's acknowledgment came after reports surfaced about the intelligence community's suspicions. In his message to employees, he said he had been unfaithful to his wife but did not address the espionage allegations directly.

The affair has also renewed attention to Huang's relationship with the Trump administration. The CEO has been a prominent voice in debates over AI chip export policy, and critics have questioned whether his access to the White House has shaped decisions that benefit Nvidia's bottom line.

Neither Nvidia nor the Justice Department responded immediately to requests for comment on the investigation. It was not clear whether federal authorities have opened a formal inquiry separate from the company's board review.

The episode lands in the heart of Silicon Valley's most important industry at a moment of heightened tension over technology and national security. For local residents, Nvidia is not just a corporate titan but a major employer and economic engine for the region. The outcome of the investigation could affect the company's leadership, its relationships with Washington and Beijing, and the broader debate over how the United States safeguards its most critical technology.