AI & Machine Learning · Engineering, IT & AI
Should you build or buy LLM Gateway & Routing?
LLM gateway and routing software sits between your application and one or more AI model providers, handling request routing, API key management, rate limiting, cost tracking, semantic caching, and logging across multiple LLM backends from a single unified layer.
The build-vs-buy decision for LLM Gateway & Routing turns on your request volume and whether data-residency requirements genuinely require self-hosting the routing layer versus accepting the modest overhead of managed gateway pricing; the specifics decide it.
Build it, buy it, or bridge?
When building makes sense
Self-hosting a gateway makes sense in two scenarios. First: your organization has data-residency or compliance requirements that prohibit routing AI API calls through a third-party service. For teams in that position, self-hosting LiteLLM or Portkey OSS has become the documented default rather than the exception, with enterprise architecture guides explicitly recommending self-hosted gateways for compliance. Second: your request volume is high enough and predictable enough that the per-request economics of managed services materially exceed the operational overhead of running your own. That break-even point is roughly above 50 million requests per month. Below that, the DevOps cost of running a gateway — initial setup plus ongoing maintenance — typically exceeds the managed subscription fee.
When buying makes sense
Managed platforms like Portkey and Helicone charge $50 to $80 per month for features that take real engineering to replicate: better dashboards, semantic caching, A/B testing between models, and guardrail integrations. For small and mid-size teams that want multi-provider routing without becoming infrastructure teams, that's an easy exchange. The gateway logic itself is simple — most teams use basic routing and logging — and vendor pricing has not been spiking. The AI era has made the core logic easier to build than it used to be, but below high volume thresholds the self-host economics don't favor it, and managed pricing is reasonable.
The desk read
LLM gateways handle routing across model providers, key management, rate limiting, and cost tracking. The core logic is simple enough that OSS options like LiteLLM are free, actively maintained, and explicitly designed for self-hosting. For teams with data residency requirements or compliance constraints around where API calls go, self-hosting has become the documented default rather than the exception.
Managed platforms like Portkey and Helicone charge $50 to $80 per month for polish: better dashboards, semantic caching, A/B testing, and guardrail integrations. That's a reasonable trade for small teams that want to move fast. The build case gets serious when volume is high and predictable enough that the operational overhead of self-hosting amortizes across meaningful cost savings, typically above 50 million requests per month. Below that threshold, managed pricing is not spiking, and the ops cost of running your own gateway often exceeds the subscription. The AI era is making gateway logic easier to build but hasn't changed the fundamental economics much at median scale.
Vendors in LLM Gateway & Routing
Each file covers what the product is, its funding history, and when the index last verified it alive.
Frequently asked
What is LLM Gateway & Routing?
LLM gateway and routing software sits between your application and one or more AI model providers, handling request routing, API key management, rate limiting, cost tracking, semantic caching, and logging across multiple LLM backends from a single unified layer.
When does building LLM Gateway & Routing make sense?
Building makes sense when data-residency requirements prohibit third-party routing, or when request volume exceeds roughly 50 million per month and the operational overhead of self-hosting amortizes across meaningful cost savings versus managed subscription pricing.
When does buying LLM Gateway & Routing make sense?
For most teams, buying is the default: managed platforms charge $50–$80/month and include caching, dashboards, and guardrail integrations that cost more in DevOps time to replicate. Below high-volume thresholds, self-hosting the ops overhead outweighs the savings.
What are the main LLM Gateway & Routing vendors?
Representative vendors include Portkey, Helicone, LiteLLM, OpenRouter. B4 Pro scores the full set.