Nvidia has opened an independent investigation after a media report alleged CEO Jensen Huang had a close relationship with a Chinese businesswoman who passed information to Beijing.
In a message to Nvidia employees, Huang admitted to being unfaithful to his wife and took "full responsibility" for his actions.
The New York Times reported last month that US authorities were investigating Alice Huang, a former executive of Singapore-based company Megaspeed, which buys AI chips from Nvidia.
US authorities have scrutinised Megaspeed over suspicions it helped Beijing gain access to advanced AI chips that are barred from shipment to China.
"The NVIDIA Board is initiating an independent investigation in light of recent reporting that founder and CEO Jensen Huang has been the target of a foreign intelligence effort. A committee of independent directors, assisted by outside independent counsel, will oversee the investigation," Nvidia said.
The company said while its board has no reason to believe that either US national security or Nvidia secrets were compromised, its inquiry will examine all available information.
Huang fully supports the review and has committed to cooperating with it, it added.
Huang said in a message to employees: "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry."
Addressing his colleagues, board, partners and shareholders, Huang said: "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."
An Nvidia spokesperson said Huang is "committed to continuing to lead NVIDIA as CEO without interruption."
Top Republican politicians in the US House of Representatives have called on Huang to brief Congress this month about the report.
