AI 4UAnalyze my business

Plain-language AI glossary

Term 32InfrastructureMeaning / context / connections

Infrastructure / Definition

API Gateway

A server that acts as a single entry point for AI API requests, handling routing, rate limiting, authentication, and load balancing across multiple AI providers.

32of 75
01

MeaningThe one-sentence definition.

02

ContextHow the idea works in practice.

03

UsesWhere the concept becomes useful.

01 / Plain-language context

How API Gateway works.

An API gateway sits between your application and AI providers (OpenAI, Anthropic, Google). It provides a unified interface so your app code does not need to handle provider-specific details. Gateways like LiteLLM, Portkey, and Helicone let you switch between providers, implement fallbacks (if OpenAI is down, route to Claude), and track costs across all providers in one dashboard.

Key capabilities of AI API gateways: (1) Provider abstraction: same API format regardless of which model you call, (2) Fallback chains: automatic retry with a different provider on failure, (3) Cost tracking: monitor spend across all providers, (4) Rate limit management: queue requests to stay within provider limits, (5) Caching: cache identical requests to reduce costs.

For production apps, a gateway becomes valuable when you use multiple AI providers or need reliability guarantees. Start without one (direct API calls are simpler), and add a gateway when you need provider fallbacks, cost monitoring, or multi-model routing.

02 / Practical uses

Where it helps.

  1. 01Multi-provider AI routing
  2. 02Cost tracking and budgeting
  3. 03Automatic failover between providers
  4. 04Rate limit management
  5. 05Request caching and logging