Tesla Inc. and Space Exploration Technologies Corp. sued Illinois nanotechnology company TERA-print LLC in federal court in Austin over the Terafab name planned for their $16.8 billion artificial-intelligence chip complex in Texas. The companies are asking a judge to declare that Terafab does not infringe TERA-print’s registered Tera-Fab trademark, which covers a desktop photolithography system used in bioengineering and related applications. The dispute began after Tesla filed three Terafab trademark applications with the USPTO (U.S. trademark authority) in May, followed by a cease-and-desist letter and litigation threat from TERA-print in June. TERA-print said Tesla had discussed a settlement as recently as Sept. 2 but vowed to defend its rights. Tesla and SpaceX say consumers are unlikely to confuse their planned chip plant with TERA-print’s products. The proposed facility in Grimes County will make, package and test advanced logic and memory chips, supplying Tesla’s Optimus robots and Cybercabs and SpaceX’s proposed space-based data centers. SpaceX says the complex will employ at least 3,000 people, while filings indicate later phases could bring total investment to $119 billion.