Bernard Arnault, the billionaire CEO of LVMH (Moët Hennessy Louis Vuitton), a luxury fashion empire that includes iconic brands like Louis Vuitton, Christian Dior, and Tag Heuer, has made significant strides into the world of artificial intelligence (AI) this year. Through his family office, Aglaé Ventures, Arnault has discreetly invested over $300 million in five AI startups, signaling a strategic pivot towards technology-driven innovation. These investments come as LVMH faces stock declines linked to underwhelming earnings, pushing Arnault to explore new avenues for growth and diversification. 

A Major Bet on Artificial General Intelligence 

Arnault’s most substantial investment was a $220 million infusion into H (formerly Holistic AI), a French company specializing in artificial general intelligence (AGI). AGI represents a more advanced form of AI that aims to perform any intellectual task that a human can, marking a significant leap from narrow AI, which is limited to specific tasks. H is now valued at $370 million, positioning it as a key player in the emerging AGI field. This investment highlights Arnault’s belief in the transformative potential of AGI, not only for the broader technology landscape but also for its possible applications in enhancing customer experiences and operations within the luxury sector. 

Diverse Investments Across AI Applications 

Beyond AGI, Arnault has also diversified his investments across various AI applications: 

• Lamini (Enterprise AI): 

A $25 million investment in Lamini, which focuses on enterprise AI solutions, underscores Arnault’s interest in tools that can drive efficiency and productivity across industries. Enterprise AI is designed to optimize business operations, from supply chain management to customer service, and Lamini’s innovations could eventually be integrated into LVMH’s operations to streamline processes and enhance decision-making. 

• Proxima (Digital Marketing): 

With a $12 million stake in Proxima, Arnault is betting on AI’s ability to revolutionize digital marketing. Proxima uses AI to deliver highly personalized marketing strategies, which could be particularly beneficial for luxury brands aiming to engage with customers on a deeper level. This investment aligns with LVMH’s ongoing efforts to enhance its digital presence and leverage data-driven insights for more targeted and effective marketing campaigns. 

• Borderless AI (HR Management): 

Arnault’s $27 million investment in Borderless AI, a company focused on AI-driven human resources (HR) management, reflects a growing recognition of the importance of AI in managing talent. For a global conglomerate like LVMH, which employs thousands of people worldwide, the ability to optimize HR functions through AI—such as recruitment, performance evaluation, and employee engagement—could lead to significant operational improvements. 

• Photoroom (AI Image Editing): 

Finally, Arnault invested $43 million in Photoroom, an AI-powered image editing platform. Photoroom’s technology automates and enhances the photo-editing process, which could be particularly useful in the fashion and luxury industries where high-quality visuals are crucial. This investment not only supports Arnault’s broader technological ambitions but also aligns with LVMH’s focus on maintaining its brands’ visual and aesthetic standards. 

A Strategic Shift Towards Technology 

Arnault’s move towards AI is not entirely unprecedented. Aglaé Ventures, his family office, has a history of backing successful tech companies, including early investments in Netflix and Airbnb. However, the scale and focus of these recent investments suggest a deeper commitment to integrating advanced technologies into the luxury sector. By aligning with cutting-edge AI startups, Arnault aims to position LVMH at the forefront of innovation, leveraging AI to enhance both customer experiences and operational efficiencies. 

Bernard Arnault’s $300 million investment spree into AI startups marks a strategic shift towards technology, as he seeks to counterbalance LVMH’s recent stock market challenges and explore new growth opportunities. These investments underscore Arnault’s foresight in recognizing the potential of AI to transform the luxury industry, from improving customer engagement to optimizing business operations. As AI continues to evolve, Arnault’s early moves into this space could set the stage for LVMH to lead in both luxury and technology, solidifying his position as a visionary at the intersection of these two dynamic sectors.