MEDVi, an online provider of GLP-1 weight-loss drugs, closed 2025 with $401 million in sales and is now on track to hit a staggering $1.8 billion in 2026.
The founder, Matthew Gallagher, built the company from scratch out of his house, using AI to write code and power everything from backend systems to customer service.
With just $20,000 and a handful of AI tools, he quickly gained traction, turning it into a two-man operation by bringing in his brother, Elliot. Outsourced partners filled in the gaps where needed.
The startup even caught the attention of Sam Altman, who reportedly said he had “won a bet” with tech CEOs on when a single-person AI-powered company would emerge — and added that he “would like to meet the guy” behind it.
Then came the breakout moment.
The New York Times ran a headline-grabbing story: “How A.I. Helped One Man (and His Brother) Build a $1.8 Billion Company?” — and suddenly, MEDVi was everywhere.
But with the surge in public attention and popularity came scrutiny.
Reports from Business Insider, Forbes, and investigative YouTubers like Coffeezilla alleged the company used AI-generated before-and-after photos, fabricated client stories, and misleading marketing, to sell weight-loss drugs.
AI imagery present on the webpage.
The New York Times article acknowledged the use of AI-generated images, writing, “Medvi’s initial website featured photos of smiling models who looked A.I.-generated and before-and-after weight-loss photos from around the web with the faces changed.
“Some of its ads were A.I. slop. A scrolling ticker of mainstream media logos made it look as if Medvi had been featured in Bloomberg and The Times when it had merely advertised there.”
Not only were the images allegedly fake, but the platform was also said to feature AI-generated testimonials from clients and doctors across TikTok and Facebook — the kind where, if you look closely, the glitches give it away.
@shawn_bartlettMy new secret weapon? MEDVi started my entire wellness journey. 🤫🏃♀️✨♬ original sound – Shawn Bartlett
In some cases, the doctors featured on the website either didn’t exist — or, if they did, were unaware their identities were being used.
FDA warns about compliance concerns with MEDVi
Then came regulatory pressure.
The U.S. Food and Drug Administration reportedly issued a warning notice raising serious compliance concerns, including:
• Deceptive product labelling, where MEDVi positioned itself as a drug compounder (which it isn’t)
• Unauthorised claims equating compounded drugs with branded GLP-1s
• Improper interstate distribution practices
As Drug Discovery & Development put it: “The agency warned that failure to fix the violations could lead to seizure or injunction.”
FDA scrutiny now threatens to undermine the company’s entire business model — or even its ability to operate.
MEDVi responds to claims
In response to the allegations, MEDVi said it had not received any formal warning from the FDA and that the online references were linked to a third-party affiliate.
The company said that while an FDA letter cited a URL resembling its brand, it was directed at an affiliate marketing agency using outdated content.
“MEDVi has never received a letter from the FDA,” the company said, adding that it had taken immediate steps to have the material removed and that the affiliate had responded directly to regulators.
On claims around AI-generated “doctors” in advertising, the company acknowledged it had identified the issue and updated its marketing practices.
“We have updated our marketing practices to make clear that this type of advertising and promotion is prohibited,” the company said.
MEDVi defends FDA concerns
Gallagher took to LinkedIn, describing the company’s rapid growth as involving “many learning moments”, saying the business had consistently adapted as it scaled.
“At each stage, I have course-corrected immediately and appropriately. I will continue to do so,” he said.
Gallagher also pointed to The New York Times’ access to MEDVi’s operations and partners as part of efforts to operate transparently.
“As I continue helping our customers achieve their health goals, I remain committed to building and operating transparently,” he concluded.
Main image: Screenshot of Matthew Gallagher in the NYT story