This lawsuit follows one filed last month by Runlayer that accused Rippling of stealing its product ideas. It’s a seller and buyer-beware market warning.
After its own AI usage wake-up call, Rippling this week unveiled AI Spend Console, a product that tracks individual and team employee AI spending.
Runlayer is suing Rippling after Rippling evaluated the startup’s MCP gateway product and then opted to build one itself.
“There were employees doing things like, ‘Claude is so helpful for me — it analyzes my calendar and my email and puts together a plan for me,'” he says. “That person was spending at a run rate of $30,000 a year for this.”
The Department of Justice may be conducting a criminal investigation. This is arguably the biggest drama between two HR startups ever.