Oura is acquiring medical AI chatbot startup Counsel Health

Oura, a health-focused company, announced its acquisition of Counsel Health, a medical AI chatbot startup, for $625 million. Counsel Health, which specializes in AI-generated responses based on users' health data from wearable devices, is set to be integrated into Oura's app. The acquisition is expected to close before the end of the year.

Oura's CEO, Tom Hale, revealed that the deal is part of a broader strategy to connect wearables, clinical AI, and doctors to provide medical insights and monitor ongoing conditions. Counsel Health's app can directly connect users to a real doctor using their biometric data as the basis for its medical advice.

The plan outlined by both companies includes a focus on preventative care, acute care for episodic health concerns, and specialty and chronic care, including reproductive and cardiometabolic health. Counsel Health's current network of on-demand physicians, numbering around 50, will expand as part of the acquisition.

After the deal closes, Counsel Health's 70 employees will join Oura, with Muthu Alagappan, Counsel Health's CEO, becoming Oura's chief clinical AI officer. Oura also plans to continue offering its medical AI platform to external enterprise partners, such as health plans, health systems, consumer health organizations, and employers.