Oura CEO Responds to Backlash, Envisions a 'Cloud of Wearables'

Oura CEO Addresses Data Sharing Concerns

Tom Hale, CEO of Oura, has been actively working to clarify the nature of his company’s collaboration with the Department of Defense (DoD) and data analysis firm Palantir. These firms are utilized by various U.S. agencies, including defense, intelligence, and law enforcement. During a recent interview at the Fortune Brainstorm Tech conference, Hale immediately refuted claims that Oura shares user data with governmental bodies.

He stated that significant inaccuracies circulated regarding this matter, referencing reports amplified by social media influencers that sparked considerable public concern about the health tracker. Oura rings gather a wide range of user information, including heart rate data, sleep patterns, body temperature readings, activity levels, and menstrual cycle tracking.

Addressing Misinformation

Prior to the conference, Hale utilized TikTok to directly address the misleading reports and the resulting public relations challenges. He assured users in his first video on the platform that the company does not sell user data to third parties without explicit permission.

Hale clarified that the DoD program Oura participates in necessitates operating its enterprise solution within a distinct, secure environment, and that the government does not have access to individual user health data.

Reiterating this stance, Hale firmly stated, “We will never share your data with anyone unless you specifically authorize us to do so. A sale of your data to any entity is something we will never undertake.” He expressed gratitude that the initial wave of outrage appeared to be subsiding, noting the online reports suggesting data sharing with the U.S. government were “simply untrue.”

Clarifying the Palantir Relationship

Hale also sought to dispel confusion surrounding Oura’s connection with Palantir, characterizing the term “partnership” as an overstatement.

He explained that Oura acquired a company last year that maintained a software-as-a-service (SaaS) relationship with Palantir – a standard business contract, not a data-sharing arrangement. This relationship pertained to Impact Level 5 (IL5), a DoD certification standard for handling sensitive, unclassified information.

“This represents a component of their overall solution. The existing contract remains in effect, but the initial news regarding this relationship was exaggerated into a ‘massive partnership’ with Palantir. We maintain a limited commercial relationship. The systems are entirely separate; Palantir has no access to user data. Neither government personnel nor anyone at Palantir can view your data. The situation was significantly overblown,” he emphasized.

Data Privacy and Security

Hale underscored the importance of user data privacy and security to both the company and its customer base. He also highlighted that Oura’s terms of service explicitly state the company’s opposition to any attempts to utilize user data for surveillance or legal prosecution.

He further noted that when users grant Oura permission to access their data – for example, for technical support – the reviewing personnel have a restricted role within the company and can only view the specifically authorized information.

“We do not proactively examine user data… that is not our practice,” he stated. (It is important to note that while data is encrypted during transmission between the Oura App and the Oura Cloud using TLS 1.2, it is not end-to-end encrypted.)

Future Outlook

The CEO briefly discussed Oura’s future trajectory, observing a shift in the market, particularly in Asia and India, towards smaller, more affordable wrist-worn wearables. Conversely, ring-based wearables have increased in size.

“We are experiencing growth exceeding 100%,” Hale reported.

The company envisions itself as a “preventionist” health device, proactively alerting users to potential health issues before they escalate into more serious conditions. This capability is supported by the Oura ring’s ability to provide insights into evolving health metrics, coupled with the use of machine intelligence and a dedicated health advisor.

Government Collaboration and Potential Expansion

Oura does anticipate continued collaboration with governmental entities, but not in the manner initially portrayed. Hale cited a partnership with Medicare Advantage to provide rings to eligible patients as an example.

He also alluded to the possibility of developing additional wearable devices.

“While the concept of a single ring controlling all health monitoring is appealing, it is not practically feasible. We may see the integration of metabolic monitoring, blood pressure tracking, activity assessment, and other metrics. Therefore, I believe a diverse ecosystem of wearables will emerge, with the optimal choice depending on the specific clinical application,” he concluded.