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Vercel AI Gateway

Analysis of Vercel AI Gateway — a unified API proxy for accessing 100s of AI models through a single endpoint with budget controls and fallbacks.

Key takeaways

  • Single API key provides access to 100s of models across all major providers
  • No markup on tokens — providers' list prices with budget controls and observability
  • Sub-20ms routing latency with automatic fallbacks and load balancing

FAQ

Is Vercel AI Gateway free?

$5/month free credit included. Beyond that, you pay provider list prices for tokens with no markup.

Can I use my own API keys?

Yes, BYOK (Bring Your Own Key) is supported. Route through the gateway for observability while using your own provider keys.

Overview

Vercel AI Gateway is a unified API proxy that provides access to hundreds of AI models through a single endpoint. It simplifies multi-provider deployments with budget controls, observability, automatic fallbacks, and no token markup.[1]

Quick Reference
Websitevercel.com/ai-gateway
Documentationvercel.com/docs/ai-gateway
AvailabilityAll Vercel plans

Key Features

One Key, Hundreds of Models

Single API key accesses OpenAI, Anthropic, Google, xAI, and more. No need to manage separate keys for each provider.[2]

Unified API

Switch between providers and models with minimal code changes. OpenAI-compatible and Anthropic-compatible endpoints available.

Zero Token Markup

Tokens cost exactly what providers charge — no middleman markup. This applies to both Vercel-provided keys and BYOK.[2]

High Reliability

  • Automatic retries — Failed requests retry to alternative providers
  • Load balancing — Distribute traffic across providers
  • Fallbacks — Define backup models if primary is unavailable

Observability

Built-in request traces, token counts, latency metrics, spend tracking, and TTFT (time to first token) in the Vercel dashboard.

BYOK (Bring Your Own Key)

Use your own provider API keys while routing through the gateway for observability and fallback benefits.


Supported Providers

The gateway supports models from:

  • OpenAI — GPT-4, GPT-5, o1, o3
  • Anthropic — Claude 3.5, Claude 4
  • Google — Gemini 2.0, Gemini Pro
  • xAI — Grok
  • Meta — Llama (via inference providers)
  • And more — 100s of models total

SDK Compatibility

Works seamlessly with:

  • Vercel AI SDK (native integration)
  • OpenAI SDK (compatible endpoint)
  • Anthropic SDK (compatible endpoint)
  • LiteLLM (proxy support)
  • LlamaIndex (integration available)
  • cURL / any HTTP client
// Vercel AI SDK example
import { generateText } from 'ai';

const { text } = await generateText({
  model: 'anthropic/claude-sonnet-4.5',
  prompt: 'What is the capital of France?',
});

Pricing

ComponentCost
Free credit$5/month included
Token costsProvider list price (no markup)
Gateway routingIncluded
BYOKSupported (pay provider directly)

Strengths

  • Simplicity — One key for all providers
  • Cost transparency — No markup on tokens
  • Reliability — Automatic fallbacks and retries
  • Observability — Built-in tracking in Vercel dashboard
  • Low latency — Sub-20ms routing overhead

Cautions

  • Vercel-centric — Best experience on Vercel platform
  • Limited customization — Less configurable than self-hosted proxies
  • Vendor dependency — All traffic routes through Vercel

Competitive Position

vs AlternativeAI Gateway AdvantageCompetitor Advantage
Direct provider APIsOne key, fallbacks, observabilityNo middleman, full control
LiteLLM ProxyManaged, no infrastructureSelf-hosted, open-source, more config
OpenRouterVercel integration, no markupMore model variety, specialized routing

Best fit: Teams using Vercel who want unified multi-provider access without managing infrastructure or paying markup.


Bottom Line

Vercel AI Gateway is the simplest way to access multiple AI providers from a single API. Zero markup pricing is genuinely competitive — you're not paying a premium for the convenience.

For Vercel users, it's an obvious choice. For non-Vercel users, LiteLLM Proxy offers similar functionality with more customization but requires self-hosting.


Research by Ry Walker Research