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

Oura, a leading smart ring company, has acquired AI-native primary care startup Counsel Health for $625 million. This deal comes after Oura postponed its IPO indefinitely due to market uncertainty. Counsel Health offers a chat-based medical experience with licensed physicians via its AI-powered platform, integrated into the Oura app since June. Users can now access personalized medical advice and consult with physicians within the Oura app.

The acquisition aims to expand Oura's offerings in preventative, acute, and specialty care, as well as chronic care. While Oura has maintained its dominance in the smart ring market, competitors like RingConn and Ultrahuman pose a threat, prompting the company to innovate further. Oura CEO Tom Hale stated that Counsel Health will help members address a range of health needs, from quick consultations and prescriptions to lab results, chronic care, and referrals.

Counsel Health raised $36 million in funding, including a $25 million Series A led by Andreessen Horowitz (a16z) and GV. Following the acquisition, Counsel will continue serving existing and new enterprise partners, with the goal of expanding its AI-native care model to a broader audience. Counsel CEO Muthu Alagappan will join Oura as chief clinical AI officer, along with the company's 70 employees.

Counsel's mission emphasizes trust, safety, and responsibility in medical AI, with physicians involved in clinical decision-making.

The acquisition is expected to close before the end of 2027. Oura reported a 153% year-over-year revenue growth to $533 million for the quarter ending September 30. For fiscal year 2026, the company generated approximately $1.75 billion in revenue, marking a 92% year-over-year growth. The company's valuation reached $11 billion after a $900 million late-stage funding round in October 2025.