AI Startup Runlayer Sues Rippling, Claiming It Stole Its Technology

Runlayer, a startup funded with $42M from investors Khosla Ventures and Felicis, sued Rippling on July 28, 2026. The lawsuit claims Rippling spent nearly a year working with Runlayer under a secrecy agreement to learn how its product — software that helps AI systems connect to other programs — worked, then copied it instead of paying to use it. Rippling denies the claims and is releasing its own version.