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.
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.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
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