LLM Routing in 2026: How to Choose Between Managed Gateways and Self-Hosted Libraries
The choice between managed API gateways and self-hosted routing libraries for large language models depends primarily on who controls the infrastructure rather than the number of supported models. LiteLLM, which documents support for over 100 providers, suits teams running their own GPU clusters, though it requires engineers to handle updates, secrets, and scaling themselves. OpenRouter, which raised $113 million in a Series B round at a $1.3 billion valuation, offers a single API key abstracting multiple vendors, making it strong for model discovery but at an added cost margin over direct provider calls. Managed options like Portkey, Cloudflare AI Gateway, and Vercel AI Gateway prioritize observability and operational simplicity, but tie users to their respective ecosystems. A lightweight local-first client category also exists for users seeking immediate usability without server setup, though it lacks observability dashboards, custom integration hooks, and transparent upstream provider disclosure.
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