Bernard Arnault, CEO of LVMH, states that Olympics sponsorship embodies the essence of France.

• The sponsorship deal between LVMH and the parent company of brands like Loewe, TAG Heuer, and Dom Perignon was the result of a year of negotiations and involved an investment of approximately $160 million.
• The 2024 Paris Olympic Games, starting on Friday, will showcase the partnership.
• "Our goal is not to display brands, but to exhibit the spirit of our group and the country," said Arnault. "We aim to showcase the country's strength globally."

For the first time, a luxury brand is an Olympic sponsor, and it's not just one brand, it's the empire of.

In an interview with Andrew Ross Sorkin at Dior's flagship store in Paris, LVMH Chairman and CEO Bernard Arnault revealed that they attempted to collaborate with the Olympic Committee to showcase something new and unprecedented with the Olympics.

The sponsorship deal between LVMH and the parent company of brands like Celine, Louis Vuitton, Loewe, Tiffany, TAG Heuer and Dom Perignon was the result of a year of negotiations and ultimately resulted in an investment of approximately $160 million from LVMH.

The 2024 Paris Olympic Games, starting on Friday, will showcase the partnership.

Chaumet, a jeweler owned by LVMH, has been the first to design medals for the Olympic and Paralympic Games. The trunks used to house the medals were made by the LVMH brand Louis Vuitton. In the hospitality suites, Moët Hennessy wines and spirits from LVMH will be served. The French teams will wear uniforms designed by LVMH's Berluti for the opening ceremony.

"Our goal is not to display brands, but to exhibit the spirit of our group and the country," said Arnault. "We aim to showcase the country's strength globally."

Sports will remain a crucial element of the company's future, as stated by Arnault.

He stated that we have always been close to sport because we share its values.

Luxury market under pressure

At present, consumers in the U.S. and Asia are facing pressure, and LVMH's Olympic sponsorship occurs during this time.

Japanese Yen's weakness is attracting Chinese luxury shoppers to Japan for discounted LVMH goods.

This week, global luxury stocks experienced a selloff, led by LVMH, which is viewed as a benchmark for the luxury sector as a whole. Despite beating expectations in the first quarter, LVMH's second-quarter sales fell short of analyst predictions.

LVMH's sales in Japan increased by 57% in the second quarter, while the rest of Asia experienced a 14% decline.

""Despite the current uncertainty on geopolitical grounds, including wars and economic problems such as inflation and interest rates, I remain optimistic about the long-term future. However, this trend may fluctuate with ups and downs in the midterm," said Arnault."

Pre-Olympics lunch

On Thursday, Emmanuel Macron, the French President, had a pre-Olympics lunch with global executives, including Arnault, Musk, and Chesky.

During a conversation with Sorkin on CNBC's "Squawk Box" on Friday morning, Chesky revealed that one of the main topics discussed at the lunch was the "evolving economy driven by AI and robotics and its potential impact on the future generation."

The Elysee is hosting a lunch one day before the Opening Ceremony as part of an effort to attract investment in France. However, uncertainty persists regarding the ruling government after the July snap election.

Before lunch, Arnault informed Sorkin that the last time he and Musk had conversed, they discussed the concept of placing Louis Vuitton inside a rocket.

"I'm afraid he will ask me to go with him in the rocket," said Arnault. "We must think."

NBCUniversal, the parent company of CNBC, owns NBC Sports and NBC Olympics. NBC Olympics holds the U.S. broadcast rights to all Summer and Winter Games through 2032.