Why Did Three Cofounders Exit Billionaire-Backed AI Startup "H" Following a $200M Raise?

The Hidden Power of Investors in Shaping Company Strategy and Ethics.

In the high-stakes world of startups, one truth often remains unspoken: The investors you choose can make or break your company. And sometimes, they can even determine who stays and who goes. This lesson is playing out in real-time at French AI startup H, where three of its five co-founders have recently left the company, citing “operational differences.” But what’s going on behind the scenes?

The Rise of H: A New Kind of AI Company

H, which stands for “human-centric,” made waves in May when it emerged from stealth mode with an eye-popping $220 million seed round. This funding was secured from a diverse array of investors, including heavyweights like Accel, UiPath, Bpifrance, Amazon, Samsung, and billionaire backers such as Eric Schmidt, Xavier Niel, Yuri Milner, and LVMH CEO Bernard Arnault.

H set out with a bold vision: to develop a new generation of AI models known as “agentic” AI—systems designed not just to process information but also to reason, plan, and collaborate to complete tasks. The company’s ultimate goal? To bring us closer to Artificial General Intelligence (AGI), a level of AI that matches or even exceeds human capabilities.

The Founding Team: Who’s In and Who’s Out?

From the start, H assembled a dream team of AI experts. Among them were Daan Wierstra, Karl Tuyls, and Julien Perolat — three luminaries who previously held senior roles at Google DeepMind, Alphabet’s renowned AI lab. Wierstra, a pioneer in deep reinforcement learning, was set to become Chief Scientist. Tuyls, who led large teams at DeepMind and co-authored groundbreaking research, took on the role of Chief Research Operations. Perolat, an expert in multi-agent learning, became Chief Multi-Agent.

However, just months after the company’s launch, Wierstra, Tuyls, and Perolat are now exiting H. This leaves Charles A. Kantor, CEO, and Laurent Sifre, Chief Technology Officer, at the helm of the company. Both Kantor and Sifre also come from DeepMind, where they contributed to significant advancements in AI, including the development of AlphaGo, AlphaFold, and AlphaStar.

Operational Differences — or Investor Influence?

The phrase “operational differences” is often a catch-all for deeper, more complex issues. In my experience as a serial entrepreneur, such differences typically arise when there’s a clash between the founders’ original vision and the realities imposed by investors. And here’s where things get interesting.

Investors like those backing H — Accel, UiPath, and billionaire figures like Arnault and Schmidt — don’t just bring money to the table; they bring influence. They have a say in strategic decisions, and their priorities can sometimes lead to significant shifts in a company’s direction.

When you’re chasing a vision as ambitious as AGI, it’s not uncommon for tensions to surface around how that vision should be pursued. Ethical concerns, data privacy, the choice of partners, and even the pace of development can all become points of contention. If these issues are not managed carefully, they can lead to fractures within the founding team.

Could it be that H’s investors, now sitting at the decision-making table, saw a different path forward than Wierstra, Tuyls, and Perolat? Perhaps they wanted to accelerate certain aspects of the business, or maybe ethical considerations around AI development became sticking points. While we may never know the full story, what is clear is that the departure of these three co-founders marks a significant shift in the company’s journey.

The Power of Investors: What Every Founder Should Know

As a founder, who you choose as investors is one of the most critical decisions you’ll ever make. Their influence can extend far beyond funding, impacting everything from company culture to ethical stances and even who remains in leadership positions.

Investors bring their own agendas, and when these don’t align perfectly with those of the founding team, conflicts can arise. In the case of H, the very people who helped shape the company’s innovative approach to AI are now gone, just as the company is preparing to release its first products.

The Road Ahead for H

Despite these departures, H is moving forward with its mission. The company has grown to nearly 40 engineers and researchers, all committed to advancing “agentic” AI. But the road ahead won’t be easy. Achieving AGI is a monumental task that will require not just technical excellence but also a strong ethical foundation — something that can be compromised when the focus shifts too heavily towards satisfying investor demands.

H’s future success will depend on its ability to navigate these challenges while staying true to its original vision. With Kantor and Sifre at the helm and the continued backing of its investors, the company still has the potential to make significant strides in AI. But the departure of three key co-founders serves as a stark reminder: In the world of startups, aligning your vision with your investors is not just important—it’s essential.

Final Thoughts

Having been through the startup grind, I know how easy it is for a shared vision to become fractured under the pressures of growth, investor demands, and ethical dilemmas. But I also know that with the right leadership and careful alignment with investors, it’s possible to overcome these challenges and build something truly transformative.

The coming months will be critical for H. The company must prove that it can continue to innovate and push the boundaries of AI while maintaining the ethical standards that are so crucial in this field. Only time will tell if they can succeed in this endeavor, but one thing is certain: The story of H is far from over.