New Delhi, Nov. 9 -- Nvidia CEO Jensen Huang is facing scrutiny after reports linked him to a woman allegedly associated with a foreign intelligence operation and a company under investigation over the possible diversion of advanced AI chips to China. The chipmaker has launched an independent investigation into the matter, raising questions about the extent of the board's authority and whether it can remove its founder as chief executive.

The controversy involves Alice Huang, an executive at Singapore-based Megaspeed, a major Nvidia customer that has reportedly purchased more than $4.8 billion worth of Nvidia chips over two years.

US intelligence agencies reportedly believe that Alice Huang was gathering information for Beijing. Authori...