A startup called Runlayer has accused HR software company Rippling of stealing its product idea, after a lengthy trial period. The lawsuit raises questions about the future of AI infrastructure sales in the enterprise market.

During the trial, Runlayer shared its product roadmap and source code with Rippling, which signed non-disclosure agreements to prevent copying. However, shortly after ending the trial, Runlayer claims that a ‘Rippling insider’ informed founder Andrew Berman of an internal project building a nearly identical product.

Rippling denies these allegations, stating that its product is based on proprietary information and will outperform Runlayer in the market. The legal battle could set a precedent for similar disputes in the AI sector.

The crowded field of MCP gateway products, which allow secure data access to AI models, has intensified competition. With both companies reluctant to build internally due to cost and time constraints, the outcome will likely shape the future landscape of enterprise AI tools.