Oura to acquire AI healthcare startup Counsel Health for $625 million

Oura revealed on Tuesday that it is purchasing the AI-native primary care business Counsel Health in a deal valued at $625 million. This acquisition follows the company’s decision to postpone its initial public offering, which was anticipated to reach $2.2 billion, due to market volatility.

Counsel Health operates a platform that merges chat-based medical assistance with access to licensed doctors. This service was first incorporated into the Oura application in June. Through this system, users can obtain medical guidance from an AI and consult with physicians directly within the app. The two companies now intend to broaden this collaboration to cover preventative, acute, specialty, and chronic care services.

Facing increased competition in the smart ring sector from rivals such as Ultrahuman and RingConn, Oura is aiming to grow its business and improve medical access for its customers. Oura CEO Tom Hale stated 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 Health previously secured $25 million in a Series A funding round led by GV and Andreessen Horowitz. According to Pitchbook, the startup had raised a total of $36 million before this acquisition. Following the merger, Counsel will continue to support its current and future enterprise partners, with the aim of extending its AI-based care model to a wider audience.

Counsel CEO Muthu Alagappan will transition to Oura as the chief clinical AI officer, bringing the startup's 70 staff members with him, Bloomberg reports. Regarding the partnership, Alagappan said in the press release, “At Counsel, we’ve built medical AI around trust, safety and responsibility, keeping physicians in the loop for clinical decisions.” He added, “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.”

The transaction is set to be finalised before the end of 2027. Oura also reported that its revenue for the quarter ending September 30 climbed 153% year-over-year to $533 million. For the 2026 fiscal year, the firm recorded revenue of about $1.75 billion, representing a 92% increase compared to the previous year. The business attained an $11 billion valuation after securing $900 million in late-stage funding in October 2025.