A startup called Runlayer is suing Rippling, alleging the latter stole their AI tech after a year-long trial where Runlayer shared source code under an NDA. Runlayer claims Rippling built a copycat product using their proprietary info, while Rippling calls the lawsuit a desperate move to avoid competition, insisting their product is original and built in-house. The case underscores a rising trend: big players are opting to build their own AI tools rather than buy them—even after deep collaboration. With a major law firm backing Runlayer and the AI infrastructure space heating up, this legal battle could reshape how startups protect their IP in the AI era.
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