Oura, the company behind the Oura Ring, announced on Tuesday it is acquiring AI-native primary care startup Counsel Health for $625 million. The acquisition comes weeks after Oura postponed its planned initial public offering indefinitely.
Counsel Health provides 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, allowing users to connect with Counsel's medical AI and chat with a physician directly within the Oura app. The companies plan to expand across preventative care, acute care, and specialty and chronic 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,” Hale said.
Counsel Health CEO Muthu Alagappan will join Oura as chief clinical AI officer, along with the company's 70 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."
Oura also announced its quarterly earnings. Revenue grew 153% year-over-year to $533 million for the quarter ending September 30. For its fiscal year 2026, Oura generated approximately $1.75 billion in revenue, marking 92% year-over-year growth. The company reached an $11 billion valuation following a $900 million late-stage funding round in October 2025.
Counsel Health raised a $25 million Series A round a year ago, led by Andreessen Horowitz and GV. PitchBook estimates the company had raised a total of $36 million.
Sources differ on the expected closing timeline for the deal. TechCrunch reports the deal is expected to close before the end of 2027, while The Verge reports Oura expects it to close before the end of the year.
Following the acquisition, Oura says Counsel will continue serving existing and new enterprise partners, including health plans, health systems, and employers. Alagappan said Counsel is also planning to expand its network of on-demand physicians, which currently numbers about 50 people.
Analysis
Why This Matters
- Oura's move signals a major strategic shift from wellness tracking to integrating clinical care, potentially setting a template for the wearables industry.
- The $625 million deal validates the AI-native primary care model and offers a strong exit for Counsel Health's backers, including a16z and GV.
- It provides Oura a strong competitive differentiator against emerging smart ring rivals.
Background
Oura is best known for its Oura Ring, a smart ring used for sleep and activity tracking. Counsel Health is an AI-powered primary care company that uses a chat interface to connect users with licensed physicians.
Key Perspectives
Oura CEO Tom Hale: The acquisition will allow Oura to connect wearables, clinical AI, and access to doctors, enabling users to take action on their health across a range of needs.
Counsel Health CEO Muthu Alagappan: Counsel built its medical AI around trust and safety, and Oura's biometric data will give clinicians objective context to deliver more informed care.
What to Watch
- The exact timing of the deal's close, with sources offering conflicting timelines of either late 2026 or 2027.
- How Oura integrates clinical AI into its consumer subscription and the regulatory implications of doing so.
- Whether Counsel's existing enterprise health partnerships survive and grow post-acquisition.
Checked
12 claims in this story checked against 2 sources: 11 supported.
Show each claim
- SupportedOura is acquiring Counsel Health for $625 million.AI News & Artificial Intelligence | TechCrunch: “Oura announced on Tuesday that it’s acquiring AI-native primary care company Counsel Health for $625 million.”
- SupportedThe deal combines Oura wearables with AI-native primary care.The Verge: “Oura CEO Tom Hale said in an interview with Bloomberg that the acquisition is part of a plan to connect wearables, clinical AI, and access to doctors based on insights from biometric data”
- SupportedOura announced the acquisition on Tuesday.AI News & Artificial Intelligence | TechCrunch: “Oura announced on Tuesday that it’s acquiring AI-native primary care company Counsel Health for $625 million.”
- SupportedThe acquisition comes a few weeks after Oura postponed its planned IPO indefinitely.AI News & Artificial Intelligence | TechCrunch: “The deal comes a few weeks after Oura postponed its up to $2.2 billion IPO indefinitely, citing “uncertainty in the IPO market.””
- SupportedOura CEO Tom Hale said: “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.”AI News & Artificial Intelligence | TechCrunch: ““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 .”
- SupportedCounsel CEO Muthu Alagappan said: “At Counsel, we've built medical AI around trust, safety and responsibility, keeping physicians in the loop for clinical decisions,” and “Oura's data gives clinicians objective context, trended biometrics, and member engagement to deliver more informed care.”AI News & Artificial Intelligence | TechCrunch: ““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.”
- SupportedAlagappan will join Oura as chief clinical AI officer, along with Counsel’s 70 employees.The Verge: “Counsel’s 70 employees will join Oura as part of the deal, with Alagappan becoming Oura’s chief clinical AI officer.”
- SupportedOura’s revenue grew 153% year over year to $533 million for the quarter ended September 30.AI News & Artificial Intelligence | TechCrunch: “Oura also announced that its revenue grew 153% year-over-year to $533 million for the quarter ended on September 30.”
- SupportedOura generated approximately $1.75 billion in fiscal 2026 revenue, up 92% year over year.AI News & Artificial Intelligence | TechCrunch: “For its fiscal year 2026, Oura generated revenue of approximately $1.75 billion, marking 92% year-over-year growth.”
- SupportedOura reached an $11 billion valuation after a $900 million late-stage funding round in October 2025.AI News & Artificial Intelligence | TechCrunch: “The company reached an $11 billion valuation following a $900 million late-stage funding round in October 2025.”
- SupportedCounsel raised a $25 million Series A a year ago, led by Andreessen Horowitz and GV, and PitchBook estimates it had raised $36 million in total.AI News & Artificial Intelligence | TechCrunch: “Counsel Health raised a $25 million Series A a year ago, led by Andreessen Horowitz (a16z) and GV. PitchBook estimates it had raised a total of $36 million.”
- Reports differThe expected closing timeline differs between the reports: TechCrunch says before the end of 2027, while The Verge says before the end of the year.
