Oura Acquires AI Primary Care Startup Counsel Health for $625M

Oura has agreed to acquire Counsel Health, an artificial intelligence-driven primary care provider, in a transaction valued at $625 million. This strategic purchase follows the wearable technology company’s recent decision to indefinitely postpone its initial public offering, which was originally slated for up to $2.2 billion due to prevailing market uncertainties.

Counsel Health operates as a digital health platform that merges automated chat-based medical support with direct access to licensed physicians. The integration of Counsel’s services into the Oura application began in June, allowing users to receive personalized medical guidance and communicate with doctors directly through the app. Following this acquisition, the two organizations intend to deepen their collaboration to develop comprehensive solutions spanning preventative, acute, specialty, and chronic care sectors.

Expanding Beyond Hardware Dominance

Although Oura has maintained a leading position in the smart ring industry for several years, it faces increasing competition from rivals such as RingConn and Ultrahuman. These emerging competitors are challenging Oura’s market share, creating pressure on the company to innovate beyond hardware sales. By absorbing Counsel Health, Oura aims to diversify its revenue streams and provide members with broader access to medical services.

“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 in a press release.

The acquisition underscores Oura’s shift toward becoming a holistic health ecosystem rather than solely a device manufacturer. This move allows the company to leverage its extensive user data to offer more nuanced clinical insights, thereby enhancing the value proposition for consumers seeking integrated healthcare solutions.

Leadership Integration and Funding Background

Prior to this deal, Counsel Health had raised $25 million in Series A funding a year ago, led by Andreessen Horowitz (a16z) and GV. Pitchbook estimates indicate that the company had secured a total of $36 million in capital. Post-acquisition, Counsel will continue to serve both existing and prospective enterprise partners. The company plans to scale its AI-native care model to reach individuals outside of Oura’s current membership base.

According to Bloomberg, Muthu Alagappan, the CEO of Counsel Health, will assume the role of chief clinical AI officer at Oura. He will join along with 70 of Counsel’s employees.

“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 month.”

Financial Performance and Valuation Context

The acquisition is projected to close before the end of 2027. This strategic move coincides with strong financial performance from Oura. The company reported that its revenue grew 153% year-over-year to $533 million for the quarter ending September 30. For fiscal year 2026, Oura generated approximately $1.75 billion in revenue, representing a 92% increase compared to the previous year.

These robust growth figures contributed to Oura achieving an $11 billion valuation during a late-stage funding round in October 2025. The injection of $900 million in capital helped solidify the company’s standing in the competitive wellness and tech markets. By integrating advanced AI healthcare capabilities, Oura positions itself to capitalize on the growing consumer demand for personalized, data-driven medical advice.