Oura buys AI-powered primary care startup Counsel Health for $625 million

Oura acquires Counsel Health for $625 million

Finnish-founded Oura is buying Counsel Health, a California-based AI primary-care startup, for $625 million in cash. The deal will fold Counsel’s 70 employees—including its CEO, Muthu Alagappan—into Oura’s app, giving users access to around-the-clock medical AI and real doctors.

Oura expects to close the acquisition by the end of 2027. It’s the company’s third acquisition of 2026, following January’s purchase of Galen AI and April’s deal for Doublepoint AI.

AI-driven care and physician access come to Oura’s app

Counsel Health was built by doctors and AI researchers. Its system relies on specialized AI agents to gather medical histories, review records, and spot emergencies. Physicians then review the AI’s work and provide feedback, refining the system’s accuracy over time.

Since June, Oura’s six million members have had access to Counsel’s chat-based medical advice within the Oura app. A survey found that 90% of users who tried Counsel said their Oura Ring data helped them receive better care.

Oura plans to expand the partnership to cover preventive, acute, and chronic care. The integration will include reproductive health, aging, and cardiometabolic conditions. Counsel will continue serving its enterprise clients—health plans, health systems, and employers—while also supporting Oura’s user base.

Revenue surges while IPO plans stall

Oura’s revenue jumped 153% year-over-year to $533 million in the third quarter of 2026, according to unaudited figures. Full-year sales reached $1.75 billion, a 92% increase over 2025.

The growth followed a $900 million late-stage funding round in October 2025, which lifted Oura’s valuation to $11 billion. Still, the company postponed its planned $2.2 billion IPO in September 2026, citing volatile market conditions.

David Shuman, Oura’s executive chairman, called the acquisition a strategic shift beyond hardware. "Combining Oura’s data with Counsel’s clinical expertise expands our market and helps users act on their health insights," he said.

Oura Ring 5 debuts in Ulta Beauty stores amid legal challenges

Oura Ring 5 will hit shelves in 1,000 Ulta Beauty stores across the U.S. on November 22. The deal marks the first time the beauty retailer has stocked a health wearable, blending wellness tech with its traditional offerings.

The retail launch comes as Oura faces legal scrutiny. A class-action lawsuit filed in California alleges the company’s sleep-stage estimates are no more reliable than a coin flip. Oura maintains its ring is not a medical device and does not diagnose or treat illness.

Oura defends its market lead with new features and legal battles

Oura is fighting to keep its lead in the smart ring market. In March 2026, it sued Ultrahuman, accusing the Indian startup of infringing patents tied to its redesigned Ring Pro. A U.S. Customs ruling later allowed Ultrahuman’s rings back into the country, escalating competition.

To stay ahead, Oura added Cardio Effort and VO₂ Max metrics to its third-generation rings earlier this year. The updates bring its fitness-tracking capabilities closer to those of Apple Watch, Garmin, and Fitbit.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Oura is turning its smart ring into a gateway for AI-driven medical care, aiming to lock in recurring revenue while waiting for markets to stabilize before its IPO.

Key takeaways

• The $625 million Counsel Health deal links Oura’s ring data to real-time AI doctors and physicians, creating a new subscription service beyond hardware.
• Ulta Beauty’s decision to stock Oura Ring 5 shows health wearables are now mainstream in beauty retail.
• Counsel Health is Oura’s priciest acquisition—double the combined cost of its two earlier AI deals—signaling clinical integration is its top priority.

Related on Lazyfounder

• Oura
• Ultrahuman
• Andreessen Horowitz (a16z)
• Oura sues Ultrahuman again over redesigned Ring Pro, seeks U.S. sales ban
• Oura introduces Cardio Effort and VO2 Max for Gen3 smart rings