Oura Acquires AI Healthcare Startup Counsel Health for $625 Million

Oura has announced the acquisition of Counsel Health, an AI-focused primary care startup, for $625 million. The deal comes just weeks after Oura indefinitely postponed its initial public offering, which could have reached $2.2 billion, due to instability in the IPO market.

Counsel Health utilizes a chat-based platform that connects users with licensed physicians and artificial intelligence for personalized advice. The technology has been integrated into the Oura app since June of this year. The goal of the acquisition is to broaden service offerings in preventive, acute, and chronic care.

The transaction includes the transition of 70 employees from the startup to Oura. Counsel CEO Muthu Alagappan will take on the role of chief medical AI officer at the acquiring company. Oura intends to continue serving Counsel’s corporate partners to expand the care model beyond its current member base.

This move occurs amid rising competition in the smart ring sector with the emergence of rivals such as RingConn and Ultrahuman. Oura reported 153% annual revenue growth, reaching $533 million in the quarter ending in September. For the 2026 fiscal year, the company recorded approximately $1.75 billion in revenue.

The integration of artificial intelligence into health monitoring devices may increase demand for advanced processing chips and boost competitiveness among wearable technology companies.