Tesla, SpaceX and SpaceXAI filed a federal lawsuit against TERA-print LLC, a small Illinois nanotechnology company, in the US District Court for the Western District of Texas in Austin. The Musk companies are asking a judge to declare that their use of the name Terafab for a planned 16.8 billion dollar AI chip factory in Grimes County, Texas, does not infringe TERA-print's trademark. TERA-print holds US Trademark Registration No. 6,295,482 for TERA-FAB, issued in March 2021, which the company says covers specialized desktop printers used to create microscopic patterns on surfaces for uses such as sensors and biological research. Tesla publicly announced the Terafab project on March 21, 2026, and filed three trademark applications for TERAFAB and TESLA TERAFAB with the US Patent and Trademark Office on May 18, 2026. One day before sending a cease and desist letter, on May 22, 2026, TERA-print filed its own new application seeking to expand its registration to cover semiconductor materials, silicon chips, nanoelectronic devices and AI design services. TERA-print sent its cease and desist letter on May 23, 2026, and by June 10, 2026 was threatening litigation for trademark infringement, false designation of origin and unfair competition, arguing the chip factory's use of a similar name could confuse consumers. The two sides met six times between June and August 2026 but failed to reach a settlement, leading to Tuesday's filing. The lawsuit argues TERA-print's original registration covered only small desktop lab printers, not computer chips or semiconductors.