I built a $50M AI app in high school (and just sold it for...) - My First Million Recap
Podcast: My First Million
Published: 2026-03-05
Duration: 1 hr 10 min
Guests: Zach Yadegari
Summary
Zach Yadegari, a 19-year-old entrepreneur, sold his AI app, Cal AI, to MyFitnessPal after building it to $50 million in annual revenue while still in high school.
What Happened
Zach Yadegari, at just 19 years old, sold his AI-driven app, Cal AI, to MyFitnessPal, a company owned by private equity. Cal AI, which allows users to log their meals using AI by simply taking photos, had grown to generate $30 million in revenue annually and was on track for $50 million. Despite his young age, Zach's entrepreneurial journey began when he was seven, leading to the development and sale of several projects, including an unblocked gaming website during his high school years.
Zach faced significant challenges along the way, including rejection from all Ivy League schools he applied to, despite his impressive GPA and business success. This rejection, however, brought unexpected opportunities, as his viral post about the rejections led to new connections and eventually influenced his decision to attend the University of Miami.
The process of selling Cal AI was not straightforward. Zach initially faced low offers and had to run a sales process, learning that sales cycles often require creating competition among potential buyers to drive up offers. His persistence paid off when a strategic conversation with MyFitnessPal’s CEO led to acquisition discussions.
Zach's decision-making is informed by frameworks like the expected value (EV) model, which helps him rationalize selling the company against potential future gains. His approach reflects a blend of audacity and calculated risk, driven by a strong self-belief and a support network of mentors and entrepreneurial peers.
Post-sale, Zach is still involved with Cal AI under MyFitnessPal, focusing on ensuring a smooth transition. Looking forward, he is considering future ventures and has a keen interest in developing consumer products that have the potential to scale significantly, possibly venturing into hardware.
Zach remains grounded despite his success, emphasizing investments that he can control, such as his own ventures, while maintaining a diversified portfolio in the S&P 500 and other secure investments. His journey underscores the importance of adaptability and the willingness to learn from both successes and setbacks.
Throughout the episode, Zach shares insights into his growth from a motivated young programmer to a successful entrepreneur, highlighting the role of audacity and strategic thinking in achieving entrepreneurial success at a young age.
Key Insights
- Cal AI uses image recognition technology to allow users to log meals by taking photos, generating $30 million in annual revenue and projecting $50 million before its acquisition by MyFitnessPal.
- Zach Yadegari's entrepreneurial journey began at age seven and included creating an unblocked gaming website during high school, despite being rejected by all Ivy League schools he applied to.
- The sale process of Cal AI involved creating competition among potential buyers to increase offers, ultimately leading to acquisition discussions with MyFitnessPal’s CEO.
- Post-sale, Zach continues to focus on Cal AI's transition under MyFitnessPal while exploring future ventures in scalable consumer products, including potential hardware developments.