According to Windows Report | Error-free Tech Life, fresh data from Appfigures shows OpenAI’s Sora AI video app is experiencing a sharp decline after its explosive debut. Downloads fell 32% in December 2025 and then plunged another 45% in January 2026, landing at about 1.2 million installs for that month. Consumer spending followed the same downward trend, dropping 32% month-over-month to roughly $367,000 in January. This marks a steep fall from its early success, where Sora briefly hit No. 1 on the U.S. App Store and reached one million downloads faster than ChatGPT did. The app has now plummeted to around No. 101 on the App Store and No. 181 on Google Play. This slowdown comes as OpenAI reportedly faces broader financial strain, with expectations of up to $14 billion in losses this year.
The Hype Cycle Is Real
Look, this is the classic story of an AI-powered app. It launches with massive buzz, everyone rushes to try the shiny new thing, and then… reality sets in. Sora had a killer first act. Beating ChatGPT’s download milestone? That’s impressive. But here’s the thing: initial curiosity is not a business model. The data from late 2025 and early 2026 shows that a huge chunk of those early adopters simply didn’t stick around. They tried it, maybe made a few weird videos, and moved on. Sustaining engagement is a completely different beast, and it seems like Sora is hitting that wall much faster than anyone expected.
Why The Sudden Drop?
So what’s going on? Analysts point to a few factors, and they all make sense. First, you’ve got the inevitable fade of launch hype. Then there are the copyright-related content limits—users probably got frustrated when they couldn’t generate videos of their favorite characters or logos. But the biggest issue is probably competition. The market is getting crowded. Google’s pushing Gemini, Meta’s throwing AI into everything, and there are a dozen other video tools popping up. When the novelty wears off, you need a real, differentiated product. Maybe Sora hasn’t proven that yet for the average user.
OpenAI’s Bigger Problem
This isn’t just about one app cooling off. It’s a symptom of a much larger pressure cooker OpenAI is sitting in. The company is reportedly looking at astronomical losses this year. They’re phasing out older models and scrambling for new funding from big tech. In that context, every product launch has to be a home run that turns into a recurring revenue stream. Sora’s sharp decline is a warning sign that converting AI hype into durable, profitable products is incredibly hard. It’s one thing to wow people at a demo; it’s another to get them to open their wallets month after month. Can OpenAI figure out the product-market fit before the money runs out?
Is There A Comeback Story?
Now, it’s not all doom and gloom. The article notes Sora still has millions of lifetime installs and meaningful cumulative revenue. That means a core group of users finds it genuinely useful. The path forward likely involves moving beyond the consumer toy phase. Think about professional or prosumer applications—maybe tighter integration with other creative tools, or more robust commercial licenses. Basically, they need to find the people who actually need this, not just the people who think it’s cool. In the relentless world of AI, being first doesn’t matter if you’re not the best for long. OpenAI’s challenge is to make Sora essential, not just entertaining.
