OpenAI's Sora app, which made a splash with its stellar launch in October, is now facing challenges. After hitting the top of the App Store, the video-generation app is experiencing a decline in downloads and consumer spending. The app, powered by OpenAI's Sora 2 model, initially saw 100,000 installs on its first day, reaching the No. 1 spot on the U.S. App Store and surpassing 1 million downloads faster than ChatGPT. However, recent data reveals a concerning trend. In December, downloads dropped by 32% month-over-month, and in January 2026, installs fell by 45%, reaching 1.2 million. Consumer spending has also decreased by 32% month-over-month as of January. The app's popularity is being challenged by fierce competition, including Google's Gemini and Meta AI. OpenAI's struggle with copyright infringement in Sora has also impacted its adoption. Initially, the company faced backlash for allowing users to create AI videos using popular characters without consent. To address this, Sora transitioned to an opt-in model and increased restrictions, but these changes have yet to boost installs or consumer spending. The app's future remains uncertain, as it grapples with the challenge of balancing innovation and legal compliance.
