OpenAI’s AI video generation app Sora, which launched with a surge of excitement in October, is now experiencing a sharp decline in user engagement and revenue. Despite an impressive start—reaching the top of the U.S. App Store and hitting 1 million downloads faster than ChatGPT—the app has seen a notable drop in both installs and spending in recent months. Powered by OpenAI’s Sora 2 model, the iOS version launched as an invite-only app and quickly amassed over 100,000 downloads on its first day. It soon climbed to No. 1 on the U.S. App Store, a remarkable achievement given its limited availability. However, data from market intelligence firm Appfigures shows a steep decline: downloads fell 32% month-over-month in December and dropped another 45% in January 2026, reaching 1.2 million total installs. Consumer spending also declined, falling 32% from December’s peak of $540,000 to $367,000 in January. Sora’s total downloads across iOS and Android now stand at 9.6 million, with $1.4 million in consumer spending to date. The U.S. accounts for $1.1 million of that, followed by Japan, Canada, South Korea, and Thailand. On the U.S. App Store, Sora has fallen out of the Top 100 free apps, currently ranking No. 101 overall and No. 7 in the Photo & Video category. On Google Play in the U.S., it sits at No. 181. The app’s initial success was fueled by its unique blend of AI video creation and social features—users could generate videos using text prompts, insert themselves or friends as characters, and allow others to remix their content with music, sound effects, and dialogue. It was seen as an AI-powered alternative to TikTok. However, several factors are contributing to its slowdown. First, competition has intensified. Google’s Gemini app, particularly its Nano Banana model, has gained traction, while Meta AI launched its own AI video feature called Vibes, which helped boost its October downloads at the same time Sora was rising. Second, copyright concerns have dampened user enthusiasm. Initially, OpenAI used an opt-out model, allowing studios’ intellectual property to be used in Sora unless they explicitly blocked it—drawing backlash from Hollywood. In response, OpenAI shifted to an opt-in system and tightened restrictions, limiting the use of popular characters like SpongeBob and Pikachu. While a recent deal with Disney now allows users to generate videos featuring Disney characters, this hasn’t translated into a spike in downloads or spending. More importantly, many users are uncomfortable with the idea of others using their likeness in AI videos. Without the ability to easily include familiar faces or popular media, interest in the app has waned. Though Sora remains active and far from abandoned, its early momentum has faded. Whether it can regain traction through new partnerships, improved features, or better copyright controls remains uncertain. The app’s future will depend on its ability to balance innovation, user privacy, and content rights in a highly competitive and sensitive space.