AI Gateway vs LiteLLM

Detailed side-by-side comparison to help you choose the right tool

AI Gateway

Developer Tools

Databricks central AI governance layer for LLM endpoints, MCP servers, and coding agents. Provides enterprise governance with unified UI, observability, permissions, guardrails, and capacity management across providers.

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Starting Price

Custom

LiteLLM

🔴Developer

App Deployment

LiteLLM: Y Combinator-backed open-source AI gateway and unified API proxy for 100+ LLM providers with load balancing, automatic failovers, spend tracking, budget controls, and OpenAI-compatible interface for production applications.

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Starting Price

Free

Feature Comparison

Scroll horizontally to compare details.

FeatureAI GatewayLiteLLM
CategoryDeveloper ToolsApp Deployment
Pricing Plans10 tiers8 tiers
Starting PriceFree
Key Features
  • â€ĸ Unified UI for LLM, MCP, and coding agent governance
  • â€ĸ OpenAI-compatible query API
  • â€ĸ Unity Catalog inference tables for payload logging
  • â€ĸ Unified OpenAI-compatible API for 100+ LLM providers
  • â€ĸ Intelligent load balancing across providers and regions
  • â€ĸ Automatic failover with exponential backoff retries

💡 Our Take

Choose AI Gateway if you need enterprise-grade RBAC, payload-level audit, and a managed UI tied into Databricks. Choose LiteLLM if you are a smaller team or individual developer who wants a free, open-source, self-hosted proxy with broad provider support and are comfortable operating the infrastructure yourself.

AI Gateway - Pros & Cons

Pros

  • ✓Native integration with Unity Catalog means permissions, audit logs, and lineage work identically to the rest of your Databricks data assets without extra IAM plumbing
  • ✓OpenAI-compatible client interface allows existing application code to point at AI Gateway endpoints with minimal refactoring
  • ✓Governs three distinct asset types (LLM endpoints, MCP servers, coding agents) in a single pane of glass — rare across the 870+ tools in our directory
  • ✓No charges during Beta (confirmed on docs as of April 15, 2026), letting teams pilot full governance workflows before committing to enterprise pricing
  • ✓Supports major coding agents including Cursor, Claude Code, Gemini CLI, and Codex CLI, covering the dominant agent tools developers use in 2026
  • ✓Inference tables land as Delta tables in Unity Catalog, making audit and monitoring queries trivially accessible via SQL or notebooks

Cons

  • ✗Only available inside the Databricks platform — teams not already on Databricks cannot adopt AI Gateway as a standalone product
  • ✗Currently in Beta, meaning feature set, APIs, and limits may shift before GA and enterprise SLAs may not apply
  • ✗Two parallel versions exist (new AI Gateway in left nav vs. previous AI Gateway for serving endpoints), which creates documentation and migration ambiguity
  • ✗Custom MCP server hosting requires packaging as a Databricks App, adding a layer of platform-specific deployment knowledge
  • ✗Pricing is opaque enterprise-contract based with no public tier breakdown, making TCO comparisons against standalone gateways difficult

LiteLLM - Pros & Cons

Pros

  • ✓Fully open-source core with 40K+ GitHub stars and 1,000+ contributors
  • ✓OpenAI-compatible API requires minimal code changes for adoption
  • ✓Self-hosted deployment keeps all data on your infrastructure — no third-party routing
  • ✓Granular spend tracking with per-key, per-user, per-team budget enforcement
  • ✓Automatic failover and intelligent load balancing for production reliability
  • ✓Rapid new model support — typically within days of provider launch
  • ✓Backed by Y Combinator with active development and weekly releases
  • ✓Native integrations with Langfuse, Langsmith, OpenTelemetry, and Prometheus

Cons

  • ✗Requires Docker and infrastructure knowledge for self-hosted deployment
  • ✗Enterprise features like SSO and audit logging locked behind paid tier
  • ✗Enterprise pricing requires sales consultation with no published rates
  • ✗Configuration complexity increases significantly with many providers and routing rules
  • ✗Limited built-in UI for non-technical users — primarily CLI and API-driven
  • ✗Observability integrations require separate setup of Langfuse, Grafana, etc.

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