Oura to acquire AI primary care startup Counsel Health for $625M

Oura announced on Tuesday that it is acquiring Counsel Health, an AI-native primary care company, for $625 million. The deal comes a few weeks after Oura postponed its IPO, which was sized at up to $2.2 billion, indefinitely, citing "uncertainty in the IPO market."

Counsel Health is an AI-powered healthcare platform that combines a chat-based medical experience with access to licensed physicians. Its service was integrated into the Oura app in June. Users can connect with Counsel's medical AI to get personalized medical advice, and chat with a physician when needed, all inside the app. Oura and Counsel now plan to expand that partnership to build across preventative care, acute care, and specialty and chronic care.

The source frames the move against Oura's competitive position. Oura has largely dominated the smart ring market for years, but rivals such as RingConn and Ultrahuman are emerging to dethrone it, which puts pressure on the company to keep innovating. By buying Counsel, Oura is looking to expand its business and help users access medical care.

Oura CEO Tom Hale said in a press release: "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."

Counsel raised a $25 million Series A a year ago, led by Andreessen Horowitz (a16z) and GV. PitchBook estimates it had raised $36 million in total. After the acquisition, Oura says Counsel will keep serving existing and new enterprise partners, with the goal of taking its AI-native care model to more people beyond Oura's membership. Counsel CEO Muthu Alagappan will join Oura as chief clinical AI officer, alongside the company's 70 employees, Bloomberg reports.

Alagappan said in the press release that Counsel has built medical AI around trust, safety and responsibility, keeping physicians in the loop for clinical decisions, and that Oura's data gives clinicians objective context, trended biometrics and member engagement to deliver more informed care. He added that the two teams bonded over a shared vision while negotiating the deal over the past few months. The deal is expected to close before the end of 2027.

Oura also reported results alongside the announcement. Revenue grew 153% year over year to $533 million for the quarter ended September 30. For fiscal year 2026, revenue was approximately $1.75 billion, which marks 92% year-over-year growth. The company reached an $11 billion valuation after a $900 million late-stage funding round in October 2025.

Key facts

Oura is acquiring AI-native primary care company Counsel Health for $625 million, announced on Tuesday; the deal is expected to close before the end of 2027.
Counsel's chat-based medical AI with access to licensed physicians has been integrated into the Oura app since June; the two plan to build across preventative, acute, and specialty and chronic care.
Counsel CEO Muthu Alagappan becomes Oura's chief clinical AI officer; Bloomberg reports Counsel's 70 employees are joining too.
Counsel raised a $25 million Series A a year ago led by a16z and GV, and about $36 million in total per PitchBook.
Oura reported 153% year-over-year revenue growth to $533 million for the quarter ended September 30, and about $1.75 billion for fiscal 2026 (up 92%), after postponing its up to $2.2 billion IPO indefinitely.

Why it matters

A smart ring maker is buying its way into primary care. Oura already tracks physiology; with Counsel it adds a route from those readings to prescriptions, lab results, chronic care and referrals, in the words of CEO Tom Hale. The timing stands out: the deal lands a few weeks after Oura shelved an up to $2.2 billion IPO indefinitely, and the source notes that rivals RingConn and Ultrahuman are pressing Oura to keep innovating.

Who it affects

Oura members, who already see Counsel's AI and physician chat inside the app and are promised broader coverage across preventative, acute, and specialty and chronic care. Counsel's enterprise partners, whom Oura says will continue to be served. Counsel's leadership and staff: CEO Muthu Alagappan becomes chief clinical AI officer, and Bloomberg reports the company's 70 employees join Oura. Smart ring competitors RingConn and Ultrahuman are the rivals named in the source.

How to use it

Counsel's service has been available in the Oura app since June. Users can connect with the medical AI for personalized medical advice and chat with a physician when needed, all inside the app. No pricing for the Counsel service inside the Oura app is stated. The acquisition itself is not expected to close until before the end of 2027.

How solid is it

The core facts come from Oura's own announcement and press release, as reported by TechCrunch: the $625 million price, the June integration and the executive moves. The figure of 70 employees is attributed to Bloomberg, not to Oura or Counsel. Counsel's $36 million total funding is a PitchBook estimate. The form of payment (cash, stock, mix) is not stated, and the source does not say whether the $625 million includes earnouts or retention packages.

Risks and caveats

The deal is not done: it is expected to close before the end of 2027, and no explanation is given for a date that far out. Regulatory approvals required for the deal are not mentioned. Counsel's own revenue or user numbers are not given, so the price cannot be set against its business. Counsel says it keeps physicians in the loop for clinical decisions, and the expansion into acute, specialty and chronic care is so far a stated plan, not a delivered service. The new IPO timing is not given; the IPO was postponed indefinitely.

“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”

— Tom Hale, Oura CEO, in a press release