MyFitnessPal has acquired its emerging rival, Cal AI, after nearly a year of negotiations. Cal AI, an AI calorie counting app startup created by two high school students, achieved over 15 million downloads and generated more than $30 million in annual revenue within two years. The Cal AI team, including CEO Zach Yadegari and a small group of contractors, will remain with MyFitnessPal. The Cal AI app will continue to operate independently, focusing on its mission to estimate calories through food photos. Since the December acquisition, the Cal AI app has integrated MyFitnessPal’s extensive nutrition database, which includes 20 million foods, 68,500 brands, and dishes from 380+ restaurant chains. The acquisition terms were not disclosed, but the founders were reportedly happy with the offer. MyFitnessPal CEO Mike Fisher noticed Cal AI’s rise through app store rankings and emphasized the startup’s dedication. The acquisition was pursued due to the team’s focus, not just its app ranking. For instance, the team held regular meetings on Sunday nights due to the founders’ school commitments. Fisher declined to disclose the retention period for the founders post-acquisition, a period often tied to payouts and typically lasting four years. Yadegari remains active in running the app while attending college. His story gained attention after he was rejected by 15 out of 18 top colleges despite a 4.0 GPA and a successful company. Fisher stated that MyFitnessPal has no current plans to integrate Cal AI into its main product. The two apps cater to different markets, with Cal AI offering speed over accuracy and MyFitnessPal offering more detailed input options.
