Oura announced on Tuesday that it will acquire AI-native primary care company Counsel Health for $625 million. The transaction follows the company’s decision, announced a few weeks earlier, to postpone an up-to-$2.2 billion initial public offering indefinitely due to “uncertainty in the IPO market.”
What Counsel Health offers
Counsel Health operates an AI-powered healthcare platform that pairs a chat-based medical experience with access to licensed physicians. Its service was integrated into the Oura app in June, allowing users to receive personalized medical advice from Counsel’s medical AI and to connect with a physician within the same app when necessary.
Under the acquisition, Oura and Counsel intend to expand their existing collaboration across preventive care, acute care, and specialty and chronic care services.
Leadership and staff
As part of the deal, Counsel Health CEO Muthu Alagappan will join Oura as chief clinical AI officer. Bloomberg reports that Counsel has about 70 employees who will become part of Oura.
In the companies’ press release, Alagappan said Counsel has built medical AI around trust, safety and responsibility, keeping physicians involved in clinical decisions. He added that Oura’s data provides clinicians with objective context, trended biometrics, and member engagement to enable more informed care.
Oura CEO Tom Hale said the combined offering will let members move from understanding their physiology to taking health-related actions — from quick questions and prescriptions to interpreting lab results, managing chronic conditions, and arranging referrals.
Funding and financials
Counsel Health raised a $25 million Series A a year ago, led by Andreessen Horowitz (a16z) and GV; PitchBook estimates the company has raised roughly $36 million in total to date.
Oura reported revenue of $533 million for the quarter ended September 30, a 153% year-over-year increase. For fiscal year 2026, Oura generated approximately $1.75 billion in revenue, a 92% year-over-year rise. The company reached an $11 billion valuation after a $900 million late-stage funding round in October 2025.
Significance and next steps
Oura has been a dominant player in the smart ring market, but emerging competitors such as RingConn and Ultrahuman have increased pressure to keep innovating. Acquiring Counsel Health positions Oura to broaden its business and make medical care more accessible through its platform.
Oura says the acquisition is expected to close before the end of 2027. Counsel will continue to serve existing and new enterprise partners, with the stated goal of scaling its AI-native care model beyond Oura’s membership.
