Ozlo, the company known for its comfortable Sleepbuds designed to improve rest by blocking out noise, is shifting its focus from a hardware-centric business to a broader platform play. This strategic evolution began with a partnership with meditation app Calm last month and gained momentum at the Consumer Electronics Show (CES) in Las Vegas, where Ozlo engaged with potential collaborators. The move aims to expand Ozlo’s reach into new markets, including AI-powered features and healthcare solutions, transforming its revenue model beyond direct consumer sales and towards subscription services.
Founded by former Bose employees, Ozlo always envisioned building an ecosystem around its core product. The company’s initial strategy involved creating an open software development kit (SDK) for both iOS and Android, allowing third parties to leverage its technology. This SDK enables integration with other apps, thereby delivering valuable data about sleep patterns and user responses.
Expanding the Ozlo Platform with New Partnerships
One key example of this platform approach is the integration with Calm. Ozlo’s sensors can detect body movements and respiration rates, using a machine learning algorithm to determine when a user has fallen asleep or is in a relaxed state. This data, potentially shared with apps like Calm (though current data exchange is unconfirmed according to an Ozlo representative), could provide insights into the effectiveness of meditation and sleep content.
Ozlo’s smart case also includes temperature and light sensors, offering even more granular data for developers. The company believes this closed-loop feedback system, allowing content creators to assess the real-world impact of their offerings, represents a significant opportunity. Currently, many developers in the meditation and sleep space invest in content volume without robust metrics for evaluating its effectiveness, Ozlo contends.
The potential for revenue sharing is another key benefit of this expanded platform. If a user upgrades to a premium subscription within a partner app based on insights gathered through Ozlo’s device, the company could receive a commission on that transaction. Ozlo is reportedly already in discussions with other sleep and wellness applications.
Tinnitus Therapy and AI Integration
Beyond meditation apps, Ozlo is actively developing specialized features, such as tinnitus therapy tools. A clinical study conducted in partnership with Walter Reed Hospital indicated that consistently delivering a specific masking frequency overnight can alleviate the irritating ringing sensation associated with tinnitus. Ozlo plans to launch this subscription-based therapy in the second quarter of 2026.
Artificial intelligence (“AI”) is central to Ozlo’s future plans, and the company is preparing to introduce an AI-powered “sleep buddy” within its app later this year. Users will be able to interact with this AI agent via text message and benefit from personalized sleep recommendations. This will be further enhanced through integration with wearables and Apple’s HealthKit, creating a more comprehensive understanding of individual sleep patterns. Eventually, Ozlo aims to connect with Internet of Things (IoT) devices, like smart thermostats, to automatically optimize the sleep environment.
Hardware Updates and the Future of Sleep Tech
Ozlo isn’t abandoning hardware development. The next generation Sleepbuds charging case will feature an improved design to ensure secure and consistent earbud seating, as well as a redesigned antenna and amplifier to boost Bluetooth range and noise-canceling capabilities. These updates are also slated for release in the second quarter of 2026.
The company is also planning to launch a bedside speaker within the same timeframe. This device will offer similar functionality to the Sleepbuds – including sleep tracking – but without requiring in-ear usage, potentially expanding their market to include children and individuals who prefer not to wear earbuds.
Further down the line, Ozlo is exploring the integration of a light-based wake-up feature, similar to the popular Hatch alarm clock, although the exact launch timeline remains uncertain.
The Acquisition of Segotia and EEG Insights
A significant move in Ozlo’s platform development is the recent acquisition of Segotia, an Irish neurotech firm specializing in electroencephalography (EEG) technology. This acquisition will allow Ozlo to incorporate brainwave sensing into its devices, potentially unlocking real-time insights into sleep stages and cognitive states.
The integration of EEG technology will involve custom-designed eartips to accurately measure electrical signals from the ear. Ozlo believes these signals can be used to identify delta brainwaves associated with deep sleep, enabling more accurate sleep tracking and personalized interventions.
Ozlo anticipates launching a product incorporating EEG technology in 2027, which could open doors to the medical device market. This expansion will require additional capital, and the company is currently in the process of closing a Series B funding round. While details have not yet been released, the completion of this funding will be crucial for Ozlo to execute its ambitious plans. The success of Ozlo’s platform transition will depend heavily on its ability to forge successful partnerships and deliver innovative features that differentiate it in the competitive sleep tech landscape.
