Runlayer Sues Rippling for Alleged Theft of AI Infrastructure Product Idea
Runlayer, a startup offering an MCP gateway solution for secure data access by AI models and agents, has filed a lawsuit against HR software company Rippling. The suit alleges that during a product trial — which included sharing source code under non-disclosure agreements — Rippling used Runlayer’s intellectual property to build its own nearly identical product internally after negotiations failed over pricing. Runlayer claims this constitutes trade secret misappropriation and breach of contract. Rippling confirmed it is launching an MCP gateway but denied any misuse of Runlayer's IP, calling the lawsuit a misguided attempt by Runlayer to avoid competition. The case highlights challenges in selling AI infrastructure products within enterprise markets where buyers may opt to build similar solutions internally after deep technical evaluations. With $42 million raised from investors like Khosla Ventures and Felicis, Runlayer is now represented by high-profile law firm Sullivan & Cromwell.
