Oura Acquires Counsel Health for 625 Million to Expand Medical AI

Smart ring pioneer Oura announced on Tuesday that it has agreed to acquire AI-native primary care platform Counsel Health for $625 million. The transaction follows Oura's decision a few weeks prior to indefinitely postpone an up to $2.2 billion initial public offering, with leadership citing prevailing uncertainty in the public markets. The deal is expected to close before the end of 2027, according to the companies.

Counsel Health operates an AI-powered healthcare service combining a chat-based medical interface with access to licensed physicians. Its technology was integrated into the Oura app in June, allowing users to receive personalized medical advice and connect with doctors. Following the acquisition, the combined entity plans to build out offerings spanning preventative care, acute care, and specialty and chronic care.

The push into clinical services comes as Oura faces mounting pressure in the hardware market. While the company has long dominated the smart ring sector, emerging rivals such as RingConn and Ultrahuman are challenging its market share. Oura CEO Tom Hale noted in a press release that the acquisition provides a mechanism for members to take direct action on their health data, ranging from quick questions and prescriptions to lab results and chronic care referrals.

Financial disclosures released alongside the acquisition reveal robust top-line growth for Oura. The company reported that revenue grew 153% year-over-year to $533 million for the quarter ending September 30. For the full fiscal year 2026, Oura generated approximately $1.75 billion in revenue, representing 92% year-over-year growth. Previously, Oura secured an $11 billion valuation following a $900 million late-stage funding round in October 2025.

Counsel Health previously raised a $25 million Series A round a year ago, led by Andreessen Horowitz and GV, with PitchBook estimating total funding at $36 million. As part of the acquisition terms, Counsel CEO Muthu Alagappan will join Oura as chief clinical AI officer alongside the startup's 70 employees, according to Bloomberg reports. Alagappan noted that the two teams spent the past few months negotiating the deal after realizing a shared vision for combining objective biometric data with trusted clinical decision-making.

Beyond the core Oura app integration, Oura stated that Counsel will continue to serve existing and new enterprise partners. The goal is to scale the AI-native care model to outside markets, engaging health plans, health systems, consumer health organizations, and employers. According to Bloomberg, Counsel currently maintains a network of about 50 on-demand physicians as it prepares for this broader expansion under Oura's ownership.