Few business areas go untouched by the influential Arnault family. LVMH, the family’s best-known business, is synonymous with luxury. Its sprawling fashion empire includes global icons such as Louis Vuitton, Christian Dior, and Tag Heuer. Beyond the glitz and glamour of haute couture, Bernard Arnault, the patriarch of the family, has also delved into hospitality, acquiring a three-star Parisian bistro ahead of the 2024 Paris Olympics—a move aligned with LVMH’s status as a major sponsor. However, the Arnaults’ reach extends well beyond the borders of luxury and retail.
Some of Bernard Arnault’s more recent ventures have taken an unexpected turn. Amid a surge of interest in artificial intelligence (AI), Europe’s richest man has been quietly making significant investments in this cutting-edge sector. His vehicle of choice? Aglaé Ventures, a tech-focused venture fund owned by the Arnault family office.
Aglaé Ventures
Aglaé Ventures has always been a forward-looking investor, having placed bets on tech giants such as Netflix, Spotify, and Slack long before they became household names. In the past seven years alone, the French venture capital firm has made over 150 investments, backing promising startups that align with the family’s strategic vision. Recent data from the private wealth management platform Fintrx revealed that in 2024, Aglaé Ventures has invested in five AI companies, raising a total of $300 million across these ventures.
While it remains unclear how much of the capital was directly contributed by Aglaé, what’s certain is that the Arnault family’s investment activity in AI is more than just a passing interest. From productivity solutions to HR automation, the portfolio reveals a broad and strategic approach to AI, signaling that the family office is looking to leverage technology to redefine multiple industries.
Meet the Arnault-Backed AI Startups
The biggest of the 2024 funding rounds was in H Company, a French startup that aims to enhance worker productivity. H Company was co-founded by a Stanford researcher and four Google DeepMind alumni and raised $220 million in a seed funding round in May. Other high-profile backers include former Google CEO Eric Schmidt, illustrating the significant clout H Company is bringing to the AI space.
Another key player in the portfolio is Borderless AI, a Canadian human resource management startup, which raised $27 million in a funding round co-led by Aglaé and Susquehanna. Borderless AI is looking to revolutionize global HR operations, which we’ll explore in more detail below.
In addition, Photoroom, a Parisian AI-powered photo editing app, secured $43 million, while Lamini, an enterprise-focused AI startup, and Proxima, a digital marketing platform, were the other companies that benefited from Arnault’s strategic capital this year. These investments highlight the diversity of Aglaé’s approach—ranging from AI-driven creative tools to enterprise solutions—further showcasing the family office’s intent to harness AI’s transformative potential across various fields.
Exemplary AI investment of the Arnault family office: Borderless AI
Borderless AI stands out as a particularly noteworthy addition to the Arnault portfolio. The startup is not merely dabbling in AI; it is utilizing the technology to solve complex HR challenges faced by multinational organizations. Borderless AI has introduced Alberni, the world’s first AI agent for Global HR. By harnessing the power of conversational AI, Alberni can perform a host of HR tasks, including generating employment agreements, onboarding international team members, and automating payroll processes.
The company’s solutions are designed to support Employers of Record (EORs), third-party organizations that handle employment responsibilities—such as payroll, tax withholding, benefits administration, and compliance—on behalf of other companies. This approach is particularly beneficial for U.S. firms looking to hire and pay employees abroad without establishing legal entities in each country.
Borderless AI’s co-founder and Chief Executive Willson Cross highlighted the efficiency gains their technology provdes, saying, “We’re using AI to automate many aspects such as onboarding international employees, automating the creation of their agreements, and accelerating payment times and expense reimbursements.” In a sector where these processes typically take days, Alberni can execute them in a matter of minutes, setting a new standard for the global HR industry.
Aglaé Ventures: From Fashion to Fintech
Aglaé’s foray into AI should come as no surprise. The Arnault family office has always kept a pulse on emerging tech trends. Even before the recent boom in generative AI, the fund was investing in technology companies that could influence the future of business. This foresight has paid off, with investments in unicorns like Back Market, a French reseller of refurbished gadgets, and even strategic stakes in prominent digital platforms.
The tech focus extends beyond Aglaé’s investment arm. LVMH itself has been actively integrating AI into its core operations, using data analytics and machine learning to optimize everything from supply chain management to personalized customer experiences. In collaboration with Google Cloud, the luxury conglomerate hosts an annual LVMH Data AI Summit, where it brings together innovators and thought leaders to expore the future of AI in fashion. Additionally, LVMH recognizes outstanding tech companies that contribute to the luxury industry’s evolution through its innovation awards.
The Broader impact of AI on the Arnault Empire
For the Arnaults, investing in AI isn’t just about generating returns. It’s about shaping the future of industries that have historically resisted disruption. The family’s ventures into AI reflect a strategic vision to maintain leadership not only in luxury but also in technology and innovation.
By backing companies like H Company and Borderless AI, the Arnault family is placing itself at the intersection of technological progress and business transformation. These investments, combined with LVMH’s own AI initiatives, suggest that the family office views AI as a core pillar of its future growth strategy—one that will ensure it remains as influential in the world of tech as it is in fashion.
As the lines between luxury, technology, and finance continue to blur, it’s clear that the Arnaults are positioning themselves at the forefront of this convergence. With Aglaé Ventures spearheading a new wave of AI investments, the Arnault family office is poised to leave an indelible mark on yet another industry.
Source: Fortune, 01.10.2024
Picture Source: Chris Reid
