Deploy LiteLLM on Microsoft Azure with AZD, Azure Container Apps and PostgreSQL

Generative AI is evolving rapidly, and developers are increasingly looking for efficient ways to manage multiple LLMs (Large Language Models) using a centralized proxy. LiteLLM is a powerful solution that simplifies multi-LLM management by acting as a proxy server. However, setting it up on Microsoft Azure can be challenging due to lack of clear documentation—until now.

To make LiteLLM deployment on Azure Container Apps seamless, I have created an Azure Developer CLI (azd) template that simplifies the process! This article will walk you through what LiteLLM is, why it’s valuable, and how you can deploy it effortlessly on Azure using the build5nines/azd-litellm template.

What is LiteLLM?

LiteLLM is an open-source proxy server that allows developers to interact with multiple LLM providers using a unified API. Instead of integrating each model separately, LiteLLM provides a single API endpoint that intelligently routes requests to different LLMs like:

• OpenAI (GPT-4, GPT-3.5, etc.)
• Azure OpenAI Service
• Anthropic Claude
• Google Gemini
• Mistral, Hugging Face models, and more

Key Features of LiteLLM

✅ Unified API for multiple LLMs
✅ Cost Optimization by routing queries to the most cost-effective models
✅ Load balancing & failover handling
✅ Local & cloud model integration
✅ Built-in caching for faster and cheaper responses
✅ Admin UI for easy configuration

With LiteLLM, you can simplify model switching, reduce costs, and improve reliability in AI-driven applications.

Why Use LiteLLM for AI Development?

Multi-agent AI solutions and AI-powered applications need to dynamically switch between different LLM providers based on performance, cost, or task requirements. Here’s why LiteLLM is incredibly useful for AI developers:

1. Cost Efficiency & Smart Routing

LiteLLM automatically distributes queries across different LLM providers, helping you save costs by using cheaper models for non-critical tasks while reserving high-end models like GPT-4 for complex reasoning.

2. High Availability & Failover

If an LLM provider like OpenAI experiences downtime, LiteLLM can automatically reroute queries to another provider, ensuring continuous availability.

3. Flexible Deployment

LiteLLM can be self-hosted on Azure, AWS, Google Cloud, or even on-premises. Deploying it on Azure Container Apps provides a scalable and serverless way to manage your AI proxy.

4. Centralized Configuration via Admin UI

The LiteLLM Admin UI makes it easy to configure API keys, model settings, and routing logic without modifying your application’s code.

How to Deploy LiteLLM on Azure Using the build5nines/azd-litellm AZD Template

Thanks to the build5nines/azd-litellm template, deploying LiteLLM on Azure is now quick and hassle-free. Follow this step-by-step guide to get started.

Step 1: Prerequisites

Before deploying, ensure you have the following:
✔ Azure Subscription (Get a free one here)
✔ Azure Developer CLI (azd) installed – Install Guide
✔ Docker Installed – Required for building the LiteLLM container image
✔ Git Installed – To clone the deployment template

Step 2: Log in to Azure Developer CLI

Run the following command to log in to the Azure Developer CLI. This will only be required once per-install.

azd auth login

Step 3: Initialize the template

Run the following command to initialize the Azure Developer CLI (azd) environment:

azd init --template build5nines/azd-litellm

This will prompt you to enter a name for your environment and select a default Azure location.

Step 4: Deploy LiteLLM to Azure

Execute the deployment command:

azd up

🔹 This command will:
✅ Provision Azure Resources – Container Apps, PostgreSQL Database, Storage
✅ Build & Deploy the LiteLLM Docker Image
✅ Configure Environment Variables

More information about deploying the template can be found in the build5nines/azd-litellm project on GitHub.

⏳ Deployment time: This process takes around 5-10 minutes.

Step 5: Access the LiteLLM Proxy & Admin UI

Once deployment completes, you will see output similar to:

🔹 To Configure LiteLLM Models:

1. Open the Admin UI located at the /ui endpoint (i.e.: https://<container-apps-url>.azurecontainerapps.io/ui)
2. Add your API keys for OpenAI, Azure OpenAI, Claude, or other models.
3. Define routing rules to control how requests are distributed.
4. Access the Swagger UI to expose the APIs supported by LiteLLM at the root endpoint of the Container App (i.e.: https://<container-apps-endpoint>.azurecontainerapps.io/)

🎉 You now have LiteLLM running on Microsoft Azure! 🎉

Conclusion

By leveraging LiteLLM, AI developers can efficiently manage multiple LLM providers through a single, cost-optimized API. However, deploying LiteLLM on Azure manually can be complex. The build5nines/azd-litellm template by Build5Nines, authored by Chris Pietschmann, makes this process incredibly simple, allowing you to deploy LiteLLM in minutes with Azure Container Apps and a PostgreSQL backend.

💡 Benefits of this approach:
✔ Fast and Easy Deployment with Azure Developer CLI
✔ Scalable, Serverless Hosting using Azure Container Apps
✔ Centralized Model Management via LiteLLM Admin UI
✔ Cost-Effective Multi-LLM Solution

🔗 Try it Now: Deploy LiteLLM on Azure

🚀 Start building smarter AI solutions today!

Original Article Source: Deploy LiteLLM on Microsoft Azure with AZD, Azure Container Apps and PostgreSQL written by Chris Pietschmann (If you're reading this somewhere other than Build5Nines.com, it was republished without permission.)