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How AI Helped Founder to Build a $1.8B Telehealth Business

Simran Mishra

Matthew Gallagher started Medvi from his Los Angeles home with just $20,000. The telehealth company launched in September 2024 and gained 300 customers in its first month, followed by another 1,000 in the second month.

AI became a key part of Medvi’s operations. Gallagher used tools such as ChatGPT, Claude, Grok, Midjourney and Runway to build software, create content, produce ads and support customers.

Instead of building a large in-house team, Gallagher outsourced major healthcare operations to external partners. This allowed Medvi to focus on customer acquisition, technology and marketing while partners handled areas such as medical and pharmacy infrastructure.

The strategy delivered huge numbers. Medvi generated around $401 million in sales in 2025, its first full year. Gallagher later hired his younger brother Elliot as the company’s only employee, keeping the core team extremely small.

The company is now projected to reach around $1.8 billion in sales in 2026. Gallagher said Medvi had served more than 500,000 patients while using an AI-first approach alongside healthcare partners.

The Medvi story shows how AI can reduce the need for large teams. Coding, content, marketing, customer support and business analysis can now be heavily automated, allowing small teams to move much faster than traditional startups.

But rapid AI-powered growth also brings risks. Medvi has faced scrutiny over advertising and healthcare claims, showing that AI can speed up business operations but human oversight, accuracy and compliance remain essential.

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