SPCX Stock Drops 7% After Starlink Gen3 & AI Model News

SpaceX has asked U.S. regulators for permission to launch up to 100,000 satellites for its new third-generation Starlink system. Shares of the company closed down 7% on Tuesday, though they edged up 2% after hours. What's interesting is these new satellites are designed to deliver much faster internet speeds with very low delays, especially for artificial intelligence applications. SpaceX says AI systems will need massive data capacity, particularly for uploading information. The company's CEO, Elon Musk, noted they will need a bigger rocket, Starship, to launch these larger satellites. Separately, SpaceXAI, the company's AI segment, plans to launch its first AI model as soon as Wednesday, developed with Cursor. This model is expected to be competitive with other leading AI models. This matters because it shows a significant expansion of SpaceX's ambitions beyond just satellite internet.