SPCX Stock Drops 7% After SpaceX Seeks Approval For 100k Gen3 Starlink Satellites — Eyes New AI Model Launch With Cursor

• The third-generation Starlink satellites will launch on SpaceX’s Starship. 
• Starship is still in the development phase. 
• Separately, SpaceX’s AI segment, SpaceXAI, is planning to launch its first AI model developed with Cursor as soon as Wednesday, The Information reported.

Elon Musk’s rocket manufacturing company SpaceX has asked U.S. regulators for permission to launch up to 100,000 satellites as part of its new third-generation Starlink system.

The company submitted the application to the Federal Communications Commission on Monday. It covers a new “Gen3” version of Starlink, designed to operate in low Earth orbit at lower altitudes than prior versions.

Shares of the company closed down 7% on Tuesday but edged up 2% after hours.

What SpaceX Proposed

The satellites would fly in two layers at roughly 325 km and 475 km above Earth. SpaceX says the system aims to deliver much faster internet speeds with very low delays, supporting high data needs for consumers, businesses, and especially artificial intelligence applications.

SpaceX highlighted that AI systems will require massive amounts of data capacity, particularly for uploading information. The new constellation is designed to meet these growing demands. This new request is separate from SpaceX’s earlier plan to deploy up to one million satellites for orbital data centers. The application is now under review by the FCC.

Elon Musk replied to news of the filing in a post on X and said, “We’re gonna need a bigger rocket! (Starship).”

Starlink’s first and second generation satellites are both launched on the company’s Falcon 9 workhorse. The upcoming third-generation satellites are expected to be a much bigger leap. According to SpaceX and Elon Musk, each V3 satellite will deliver more than 10x the bandwidth of current V2 satellites. They will also fly at a much lower altitude, which should cut the minimum latency by about half. The satellites are also larger, making the Starship integral to their launch.

Starship, touted to be the largest rocket ever built in history, stands at about 124 meters, compared to NASA's Saturn V’s 111 meters. The vehicle is still in its development phase. The company aims to achieve full reusability of the rocket, increase flight cadence, and enable rapid satellite deployment.  

SpaceXAI Eyes New AI Model Launch

Separately, SpaceX’s AI segment, SpaceXAI, is planning to launch its first AI model developed with Cursor as soon as Wednesday, The Information reported, citing a memo sent to staff. As per the report, the model is expected to be competitive with other AI models such as Anthropic’s Opus 4.8 and OpenAI’s GPT 5.5.

SpaceX said in June that it would acquire Cursor for $60 billion in an all-stock deal. The deal is expected to close in the third quarter of 2026.

How Did SPCX Retail Traders React?

On Stocktwits, retail sentiment around SPCX stayed within the bearish territory over the past 24 hours, while message volume remained at extremely low levels.

A Stocktwits user highlighted the potential AI model launch as a “real catalyst.”

Another user dismissed Musk’s plans for SpaceX to put humans on the surface of Mars, highlighting the slow pace of advancement in space travel.

SPCX stock has fallen 7% since going public in June. 

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