OpenAI's Sora faces steep app downloads decline as AI video generator loses momentum

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OpenAI's Sora AI video creation app is struggling after its explosive October launch. App downloads dropped 45% in January to 1.2 million installs, while consumer spending fell 32% to $367,000. Competition from Google's Gemini and Meta AI, coupled with copyright infringement challenges from Hollywood studios, has dampened user interest in the once-promising AI video social network.

OpenAI's Sora Struggles After Explosive Launch

OpenAI's Sora, the AI video generator that rocketed to the top of the App Store in October, is now experiencing a sharp reversal in fortune. New data from market intelligence provider Appfigures reveals a troubling trend: app downloads decline reached 45% month-over-month in January 2026, dropping to 1.2 million installs

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. This decline is particularly concerning given that the AI video creation app initially surpassed ChatGPT in reaching the 1 million downloads milestone, despite launching as an invite-only experience

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Source: TechCrunch

Source: TechCrunch

The decline in app downloads and consumer spending paints a stark picture for the once-promising platform. Consumer spending dropped 32% month-over-month in January, falling to $367,000 from December's peak of $540,000

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. The December decline of 32% was especially alarming because the holiday season typically drives mobile app adoption as people receive new smartphones and have leisure time to explore new applications

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. To date, the app has accumulated 9.6 million downloads across iOS and Android platforms, generating $1.4 million in total revenue, with the U.S. accounting for $1.1 million of that figure

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Competition from Google's Gemini and Meta AI Intensifies

The reduced user interest in OpenAI's Sora stems partly from fierce competition from Google's Gemini and Meta AI. Google's Nano Banana model has proven particularly effective in driving adoption of the Gemini AI app, helping it regain market traction

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. Meanwhile, Meta AI launched its AI-powered Vibes video feature in October, boosting downloads precisely when Sora was attempting to establish its foothold

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. This timing created a challenging environment for the AI video generator to maintain its initial momentum.

Market traction has eroded significantly on both major platforms. On the U.S. App Store, Sora no longer ranks in the Top 100 overall free apps, sitting at No. 101, with its highest position at No. 7 in the Photo & Video category

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. The situation on Google Play is even more concerning, where the app ranks No. 181 among top free apps in the U.S.

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Copyright Infringement Challenges Hamper Growth

Copyright infringement challenges have emerged as a critical obstacle for OpenAI's Sora. Initially, the company told Hollywood studios and agencies they would need to opt out of having their intellectual property usage in Sora, which triggered immediate Hollywood studio backlash

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. Users had been creating AI videos featuring popular characters like SpongeBob and Pikachu, driving early adoption but raising serious legal concerns. To address these threats, Sora shifted from an opt-out to an opt-in model, implementing increased restrictions that limited the user experience

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In an attempt to resolve these intellectual property (IP) issues, OpenAI announced copyright deals with Disney last month, allowing users to generate videos with Disney characters

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. However, Appfigures data indicates this partnership hasn't translated into increased installs or consumer spending

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. The deal also raised concerns about brand reputation, given some of the inappropriate content users had created with Disney characters.

What This Means for AI Video Creation

The struggles facing OpenAI's Sora reveal important insights about the AI video creation app market. Despite Sora 2 being hailed as a potential disruption to social media and dubbed "the TikTok of AI," many users have proven reluctant to allow others—even friends—to use their likeness in AI-generated videos

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. Without familiar faces and with strict limits on commercial IP, the platform's appeal has diminished considerably. The app's unique features, including the ability to cast users and friends as main characters, add music and sound effects, and enable video remixing by others, haven't been enough to sustain long-term engagement

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Whether the AI video generator can stage a comeback depends on OpenAI's ability to secure more copyright deals and introduce compelling new features that address user concerns about privacy and intellectual property. The company faces a delicate balance: maintaining creative freedom while respecting IP rights and user privacy. With TikTok preparing to return to the U.S. market in a new form, the competitive landscape will only intensify. For now, the decline serves as a reminder that initial hype doesn't guarantee sustained success in the rapidly evolving AI application space.

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