OpenAI to Discontinue Sora Video App Before IPO Push
OpenAI is discontinuing its standalone Sora video application, signaling a shift in priorities ahead of a potential public offering. According to reports, the company is narrowing its focus toward coding tools and enterprise customers as it prepares for a possible IPO by late 2026.
Initially, Sora launched in September 2025 as a mobile app combining AI video generation with a social feed. As a result, users quickly embraced the platform, pushing downloads past 100,000 on the first day. Soon after, the app reached one million installs faster than ChatGPT. However, that early momentum did not last.
By December, downloads had already dropped 32% month over month, and January 2026 saw a further 45% decline. Consequently, monthly installs fell to about 1.2 million. At the same time, user spending decreased significantly, falling from $540,000 in December to $367,000 in January. Moreover, the app slipped out of the top 100 free apps in the U.S. App Store.
Several factors contributed to the decline. For instance, copyright disputes, moderation challenges, and rising competition weakened user engagement. Meanwhile, the company had already retired the earlier Sora model in the U.S. and began transitioning users to a newer version. In addition, plans emerged to integrate video generation features directly into ChatGPT.
Refocusing Strategy for Growth
The shutdown reflects a broader strategic reset. During an internal meeting, Fidji Simo, head of applications, emphasized the need to prioritize key areas. “actively looking at which areas to deprioritize” and warned that “we cannot miss this moment because we are distracted by side quests,” she said.
At the same time, leadership is determining which projects to scale back. Therefore, the company is consolidating its desktop offerings into a unified platform centered on productivity. This approach combines ChatGPT, its coding tools, and browser initiatives into a single ecosystem.
Meanwhile, competitive pressure continues to rise. Notably, rivals have gained significant traction in enterprise AI spending, particularly in coding applications. As a result, the company is doubling down on business-focused solutions rather than consumer-facing experiments.
Preparing for a Public Market Debut
The urgency behind these decisions ties directly to IPO ambitions. The company is targeting a public listing by late 2026, with expectations of reaching a substantial valuation. To support this goal, it is working toward a $25 billion annual revenue run rate.
Additionally, leadership is strengthening financial operations and aligning teams around enterprise use cases. “aggressively orienting” toward productivity use cases for business customers, Simo told staff. Therefore, resources are being redirected toward scalable and revenue-generating products.
Ultimately, the decision to shut down the video app highlights a clear shift. While experimental products once drove attention, the company now prioritizes tools that support long-term growth and market readiness.
