Fuck AI

Since the New York Times published its semi-viral big profile of Medvi last week — the “AI-powered” telehealth startup that it breathlessly described as a “$1.8 billion company” supposedly run by just two brothers — I’ve had multiple friends and family members send me the article with some version of the same message: “Can you believe this guy built a billion-dollar company with AI? Why haven’t you done this?” The story is making rounds, and giving people the impression that with a ChatGPT account and a little bit of marketing know-how, you too could be raking in millions every month.

The problem is that most of the story is utter nonsense.

Let’s start with the headline number itself. The NYT admits — buried deep in the piece — that Medvi “has not raised outside funding” and “has no official valuation.” A company’s value is typically established by investors, an acquisition offer, or public market pricing. Medvi has none of those. What it has is a revenue run rate — a projection based on early-2026 sales extrapolated across a full year. Calling that a “$1.8 billion company” is like calling someone who found a twenty on the sidewalk a “future millionaire.” Any business reporter should know the difference. Even the NYT tips its hand:

Medvi is technically not a one-person $1 billion company, since Mr. Gallagher hired his brother and has some contractors. The start-up, which has not raised outside funding, also has no official valuation.

“Technically not” doing quite a bit of heavy lifting there.

But the misleading valuation is almost the least of it. Even if you accept revenue as the relevant metric, how sustainable is that run rate for a company that just got an FDA warning letter, is facing a class action lawsuit for spam, has a key partner being sued over allegations that a major product doesn’t actually work, and is operating in an industry that regulators are actively trying to rein in?

Oh, wait, did the NYT forget to mention all of those things? They sure did! Not to mention the legions of fake, apparently AI generated doctors and patients who keep showing up in Medvi advertisements. Yes, the NYT eventually alludes to some of that, but it claims these were mere “shortcuts” that were fixed last year (they weren’t).