Sora App Downloads Plummet 45% as AI Video Hype Fades

45%. That's how much OpenAI'sSora app downloads dropped last month. The AI video generation app that once hit 100,000 installs on day one and topped the App Store is now struggling to maintain momentum.

From Hero to Zero in Months

Sora's October launch was nothing short of spectacular. Despite being invite-only and iOS-exclusive, it reached 1 million downloads faster than ChatGPT and claimed the No. 1 spot on the U.S. App Store. The "AI TikTok" seemed unstoppable.

But according to market intelligence firm Appfigures, reality hit hard. Downloads fell 32% month-over-month in December—particularly concerning since the holidays typically boost app installs as people get new devices and have time to explore. January was even worse, with installs dropping 45% to 1.2 million.

Consumer spending tells the same story. January revenue dropped to $367,000, down 32% from December's peak of $540,000. The app has slipped to No. 101 on the U.S. App Store's overall free apps chart and sits at a dismal No. 181 on Google Play.

The Copyright Conundrum

What went wrong? Sora's decline stems from a perfect storm of challenges, starting with copyright chaos. Initially, users could create videos featuring popular characters like SpongeBob and Pikachu, which drove adoption but triggered Hollywood backlash.

OpenAI switched from an opt-out to an opt-in model for intellectual property use, severely limiting content creation possibilities. While the company announced a deal with Disney last month, it hasn't reversed the downward trend—and some users creating inappropriate content with Disney characters hasn't helped the brand image.

The fundamental problem: without familiar faces and commercial IP, user interest waned. Many people weren't comfortable letting others use their likeness for AI videos, leaving the app with limited creative possibilities.

Fierce Competition Emerges

Meanwhile, competitors moved fast. Google'sGemini AI and its Nano Banana model gained traction, while Meta launched AI-powered video features that boosted its own app downloads just as Sora was taking off.

The AI video space, once Sora's domain, became crowded quickly. Without a clear competitive advantage beyond first-mover status, Sora found itself fighting for attention in an increasingly saturated market.

The Broader Implications

Sora's stumble reveals crucial insights about AI app viability. Initial hype can drive massive downloads, but sustaining engagement requires solving real problems or providing consistent entertainment value. The app's 9.6 million total downloads and $1.4 million in revenue aren't failures, but the trajectory is concerning.

For the AI industry, this represents a broader challenge: moving from technological demonstrations to sustainable products. Many AI apps struggle with the same issues—impressive capabilities that don't translate into daily use cases.

The copyright issue also highlights a fundamental tension in AI development. Training models on existing content creates powerful capabilities, but monetizing those capabilities while respecting intellectual property rights remains unsolved.

What's Next?

Sora isn't dead—its current rankings still indicate significant user interest. But the app needs to find its purpose beyond novelty. Whether through more licensing deals, enhanced features, or pivoting to professional use cases, OpenAI must act quickly.

The decline also raises questions about AI social networks more broadly. Can AI-generated content sustain the same engagement as human-created content? Do users want to interact with AI-generated videos the way they do with authentic social media?