Nvidia has opened an independent investigation into CEO Jensen Huang’s relationship with a woman that U.S. intelligence agencies say is a Chinese spy. The probe comes after reports that Huang was targeted by a Chinese intelligence effort, causing Nvidia stock to fall more than four percent on Monday morning to $178.83, wiping out over $240 billion in value.

The company’s board stated the investigation would be overseen by a committee of independent directors and outside counsel. An Nvidia spokesperson told NBC News that Huang will continue as CEO during the probe and “is committed to continuing to lead NVIDIA as CEO without interruption.” The board stressed that U.S. national and economic security remain paramount, and that there is currently no reason to believe Nvidia secrets or national security were compromised.

Huang had a relationship with a Chinese businesswoman named Alice Huang, who U.S. intelligence officials allege is a Chinese spy funneling information to Beijing. The Chinese government has denied these allegations, calling them “baseless and purely slanderous smears against China,” as cited by NBC News.

In a message to employees, Huang admitted to being unfaithful to his wife but did not mention Alice Huang by name. The note, shared with ABC News, read: “My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.” Huang continued, “my responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence. I love our country and our company. I am committed to protecting NVIDIA and supporting America’s national security. I am proud and grateful to be an American.”

Huang also apologized to his family and Nvidia staff, and said he supports the investigation.

The scandal has raised national security concerns because Nvidia is a key player in the global artificial intelligence boom, with a market value exceeding $4 trillion. Analysts noted that the investigation could spark further congressional inquiries and add risk to the stock, given Huang’s central role at Nvidia.

On Sunday, President Donald Trump expressed support for Huang, saying, “I just know he’s a fine person, but you never know what is going on,” and when asked if Huang should remain CEO, replied, “I think so. Oh yeah, sure."

Nvidia has not provided a timeline for the investigation or additional details about Huang’s contact with Alice Huang. The company said it will share updates as they become available.

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