MCP startup Runlayer accuses Rippling of stealing its product idea

Runlayer has sued Rippling, accusing the HR software company of copying its MCP gateway after an extended evaluation and product trial.

Runlayer says Rippling used sensitive materials shared during talks, then launched a near-identical product after negotiations stalled.

Rippling denies the claims, saying it is building its own product and did not misuse Runlayer’s information.

The dispute underscores a broader risk for AI infrastructure startups selling to large enterprises that can potentially replicate what they trial in-house.