FeaturedAI Gateway (LLM Gateway) Explained: What It Does, When You Need One and What It Costs
What an AI gateway (LLM gateway) is, what sits inside one, how it differs from an API gateway, when you need one and what breaks in production: streaming, fallback, budgets, caching. With an open benchmark of nginx, Kong, Portkey and LiteLLM on the same mock model, a self-hosted vs managed comparison, and what the LiteLLM 1.107.0 compromise teaches about running one.
Key takeawayAn AI gateway and an LLM gateway are the same thing: one proxy between your apps and every model provider that handles keys, limits, budgets, routing, fallback and logs. "AI gateway" is the broader name, because most also cover embeddings, images, audio and MCP tool calls.













