Oura buys AI primary care startup Counsel Health for $625M
Original: Oura to acquire AI-native primary care startup Counsel Health for $625M
Why This Matters
Wearable makers racing to own healthcare delivery, not just data collection.
Oura announced Tuesday it will acquire AI-native primary care startup Counsel Health for $625M, weeks after postponing its IPO. Counsel, backed by a16z and GV, raised $36M total before the deal.
Oura is acquiring Counsel Health for $625 million, the smart ring maker announced Tuesday — just weeks after it shelved plans for a $2.2 billion IPO, blaming market uncertainty. Counsel Health, which raised a $25 million Series A led by Andreessen Horowitz and GV, operates an AI-powered platform combining chat-based medical guidance with access to licensed physicians. The service was already integrated into the Oura app in June, letting users get personalized medical advice and connect with doctors without leaving the app. Post-acquisition, the companies plan to expand into preventative, acute, specialty, and chronic care. Counsel CEO Muthu Alagappan will join Oura as chief clinical AI officer, bringing 70 employees with him. Counsel will also continue serving its existing enterprise partners independently. Oura CEO Tom Hale framed the deal as bridging health understanding and action: "from quick questions and prescriptions to lab results, chronic care, and referrals." The company disclosed strong financials alongside the announcement — Q3 revenue of $533 million (up 153% year-over-year) and fiscal year 2026 revenue of approximately $1.75 billion, up 92%. Oura was valued at $11 billion after a $900 million funding round in October 2025. The deal is expected to close before end of 2027.