Oura announced on Tuesday it is buying AI-native primary care startup Counsel Health for $625 million. This follows a decision a few weeks prior to cancel its planned initial public offering indefinitely, which had been valued at up to $2.2 billion due to market uncertainty.
Counsel Health operates as a healthcare platform that merges chat-based medical advice with licensed doctors. Its service entered the Oura app in June.
Users can now access Counsel’s medical AI for personalised advice and speak with a physician directly inside the Oura app. The companies intend to broaden this partnership to cover preventative care, acute care, and both specialty and chronic care.
Oura has held a dominant position in the smart ring sector for years, though competitors like RingConn and Ultrahuman are gaining ground. The acquisition aims to expand the business and improve access to medical care for subscribers.
“Oura helps members understand their physiology and, with Counsel, they can take action on their health across a range of needs, from quick questions and prescriptions to lab results, chronic care, and referrals,” said Oura CEO Tom Hale.
Counsel Health secured a $25 million Series A round last year, led by Andreessen Horowitz and GV. PitchPitch estimates the company has raised a total of $36 million.
After the acquisition, Counsel will continue serving existing and new enterprise partners. The goal is to extend its AI-native care model to a wider audience beyond Oura’s membership base.
Counsel CEO Muthu Alagappan will join Oura as chief clinical AI officer. He brings the company’s 70 employees with him, according to Bloomberg.
“At Counsel, we’ve built medical AI around trust, safety and responsibility, keeping physicians in the loop for clinical decisions,” Alagappan said in the press release. “Oura’s data gives clinicians objective context, trended biometrics, and member engagement to deliver more informed care. From the start, our teams bonded over a joint vision, shared culture, and mission, further solidifying as we negotiated our deal over the past few months.”
The deal is expected to close before the end of 2027.
Oura also reported that revenue grew 153% year-over-year to $533 million for the quarter ended on September 30. For its fiscal year 2026, the company generated revenue of approximately $1.75 billion, marking 92% year-over-year growth.
The company reached an $11 billion valuation following a $900 million late-stage funding round in October 2025.
What it means
For users of the Oura ring, the change means the app will eventually offer more than just health tracking. It will provide a pathway to actual medical services, including prescriptions and doctor consultations. This moves the device from a passive tracker to an active healthcare tool.
