Bernard Arnault's Strategic AI Investments: LVMH's Tech-Driven Future

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, Aglaé 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 Aglaé 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 Aglaé, valued H at $370 million. Aglaé also invested in a $25 million seed round for Lamini, a Palo Alto-based startup building enterprise AI applications. In April, Aglaé was part of a $12 million series A round for Proxima, a New York-based AI-powered digital marketing company. Aglaé 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. Aglaé 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

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. Aglaé 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 Aglaé 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 Aglaé 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 Aglaé didn't immediately return Fortune's request for comment. To be sure, Aglaé 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 Aglaé. 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.