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King Of Luxury Bernard Arnault Goes AI Shopping, Channelling Over $300M In AI Startups As LVMH Navigates Market Challenges - Lvmh Moet Hennessy Louis (OTC:LVMHF)
French billionaire Bernard Arnault has been making a series of investments in artificial intelligence startups through his family office, AglaƩ Ventures. What Happened: Arnault, the CEO of luxury goods conglomerate LVMH LVMHF, has made five AI-related investments in 2024, according to data from private wealth intelligence platform Fintrx, CNBC reported Monday. The total amount invested by AglaƩ in these AI firms exceeds $300 million. The largest funding round this year was in H, formerly known as Holistic AI, a French startup working on full artificial general intelligence. The $220 million round in May, which also included AglaƩ, valued H at $370 million. AglaƩ also invested in a $25 million seed round for Lamini, a Palo Alto-based startup building enterprise AI applications. In April, AglaƩ was part of a $12 million series A round for Proxima, a New York-based AI-powered digital marketing company. AglaƩ joined Susquehanna to invest in the $27 million seed round for Toronto-based Borderless AI, a human resource management platform. Additionally, it invested in Photoroom, a France-based AI image editor, as part of a $43 million investment round in February. AglaƩ has made a total of 153 investments since 2017, with 53 in technology, 17 in consumer goods, 13 in business services, and 12 in financial services, according to Fintrx data. See Also: NBA Legend Shaq Missed His Tesla Cybertruck So Much, Instead Of Shipping It From Vegas To Atlanta, He Reportedly Ordered One More Why It Matters: Arnault's recent investments in AI come at a crucial time for the luxury mogul. In July, LVMH experienced a decline in its over-the-counter shares after earnings fell short of expectations. This drop significantly impacted Arnault's fortune, making him vulnerable to losing his position as the third-richest person in the world to Meta Platforms Inc. CEO Mark Zuckerberg. Arnault, the mastermind behind the luxury giant made headlines in July for his decision to remain CEO until he reaches 80. At 75, Arnault shows no signs of stepping down from his fashion empire. Warren Buffett, the 93-year-old CEO of Berkshire Hathaway, weighed in on the issue in a letter to Arnault. Buffett criticized Arnault's decision to set the CEO retirement age too low, arguing that great leaders only improve with age. Arnault's strategic moves in the tech sector are not entirely new. In an interview, Arnault revealed that the late Steve Jobs had once sought his advice on Apple's retail strategy. This collaboration proved to be a massive success, showcasing Arnault's keen business acumen. Moreover, Arnault's innovative thinking was also evident in his discussions with Elon Musk about a potential SpaceX-Louis Vuitton collaboration. Although the idea of a Louis Vuitton-branded rocket was more whimsical, it highlighted Arnault's willingness to explore unconventional ventures. Read Next: Donald Trump Asks: 'Why Are We Having An Election?' Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs
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LVMH's Bernard Arnault has quietly invested in AI startups via his family office
Few business areas go untouched by the influential Arnault family. LVMH is the family's best-known business, and its sprawling luxury fashion empire owns Louis Vuitton, Christian Dior, Tag Heuer, and more. But the Arnaults' reach goes well beyond top-end brands. For instance, patriarch Bernard Arnault bought a three-star Parisian bistro ahead of the Paris Olympics, for which LVMH was a big sponsor. Other acquisitions, such as that of the world's first department store, Le Bon Marche, happened decades ago. Some of Arnault's more recent interests are far away from retail or luxury, though. Turns out, Europe's richest man has been quietly investing in AI amid a surge of interest in the novel tech. AglaƩ Ventures, a tech-focused venture fund owned by the Arnault family office, has invested in five AI companies this year, CNBC reported, citing data from private wealth management platform Fintrx. The funding rounds across the companies were worth $300 million in total, according to Fintrx, although it's unclear how much of that was contributed by Arnault's VC. The biggest of 2024's five funding rounds was in H, a French startup that aims to improve worker productivity. The company, cofounded by a Stanford researcher and four Google DeepMind alums, raised $220 million in seed funding in May, of which AglaƩ was a part. Other well-known business personalities, such as former Google CEO Eric Schmidt, have also backed H Company. Borderless AI, a Canadian human resource management startup, raised $27 million led by AglaƩ and Susquehanna, while Parisian AI editing app Photoroom received $43 million in funding. Lamini, an enterprise AI startup, and Proxima, a digital marketing platform, were among the other companies that gained a funding boost from the Arnault-owned venture fund. Agache and AglaƩ didn't immediately return Fortune's request for comment. To be sure, AglaƩ has been investing in tech companies long before the recent generative AI boom -- for instance, it was part of funding rounds in 2017 and 2019 too, according to Fintrx. The French venture capital firm has made over 150 investments in the last seven years. French gadget reseller Back Market is one of the unicorns backed by AglaƩ. The Arnaults are known for their clout in the luxury world, but their family office has been involved in tech investments for the better part of two decades now. It was an early investor in Netflix, Spotify, and Slack. The LVMH CEO's interest in AI doesn't just extend to startups. The luxury conglomerate has been integrating AI into its business with a Google Cloud partnership. The company has been chipping in on the subject through its annual LVMH Data AI Summit and awarding innovative tech companies that help change the fashion industry. Like others, the Arnaults just want to be part of the game as AI continues to surge in potential and popularity.
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Bernard Arnault, CEO of luxury giant LVMH, has invested over $300 million in AI startups through his family office. This move signals LVMH's commitment to integrating AI into its business model.
Bernard Arnault, the CEO of luxury conglomerate LVMH and one of the world's wealthiest individuals, has quietly embarked on a significant artificial intelligence (AI) investment strategy. Through his family office, AglaƩ Ventures, Arnault has channeled more than $300 million into AI startups this year alone 1. This move underscores the growing importance of AI in the luxury sector and LVMH's commitment to technological innovation.
Arnault's AI portfolio now includes investments in five promising startups:
These investments span various AI applications, from language processing to biotechnology and content creation, indicating a broad approach to AI integration.
The substantial investment in AI startups aligns with LVMH's broader strategy to incorporate cutting-edge technology into its business model. As the luxury industry faces increasing pressure to innovate and adapt to changing consumer behaviors, LVMH is positioning itself at the forefront of the AI revolution in luxury retail.
Arnault's interest in AI is not new. LVMH has been exploring AI applications in various aspects of its operations, including inventory management, customer service, and personalized marketing. The recent investments suggest a more aggressive push towards AI integration across the company's portfolio of brands.
The move by Arnault and LVMH could have far-reaching implications for the luxury industry. AI technologies have the potential to enhance product development, improve supply chain efficiency, and create more personalized customer experiences. By investing in diverse AI startups, LVMH is laying the groundwork for future innovations that could reshape how luxury goods are designed, marketed, and sold.
While the potential benefits of AI in luxury are significant, the integration of these technologies also presents challenges. Maintaining the human touch and craftsmanship that define luxury brands while leveraging AI capabilities will be a delicate balance for LVMH and its competitors.
As the luxury sector continues to evolve, Arnault's strategic AI investments position LVMH to lead the industry's technological transformation. The coming years will likely see increased AI adoption across the luxury landscape, with LVMH at the forefront of this digital revolution.
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