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The Vercel AI SDK provides a simple and unified API for interacting with OpenAI-compatible language models. This guide explains how to integrate the SDK with OpenAI or any OpenAI-compatible API endpoint for text generation, streaming, image generation, and multimodal (vision) capabilities.

Prerequisites

Before you begin, ensure you have:
  • Node.js 18+
  • An OpenAI-compatible API endpoint
  • An API key
  • npm or another package manager

Installation

Install the required packages:
npm install ai @ai-sdk/openai dotenv

Package Overview

PackageDescription
aiCore Vercel AI SDK containing text generation, streaming, and image APIs.
@ai-sdk/openaiOpenAI provider that supports both OpenAI and OpenAI-compatible endpoints.
dotenvLoads API keys and configuration from environment variables.

Environment Variables

Create a .env file:
API_KEY=your_api_key
BASE_URL=https://your-openai-compatible-endpoint/v1
MODEL_NAME=gpt-4o-mini
IMAGE_MODEL_NAME=gpt-image-2
BASE_URL is optional when using the official OpenAI API. Specify it only when connecting to an OpenAI-compatible provider or proxy.

Client Configuration

Create a reusable client configuration.
import { createOpenAI } from '@ai-sdk/openai';
import * as dotenv from 'dotenv';

dotenv.config();

const apiKey = process.env.API_KEY;
const baseURL = process.env.BASE_URL;

export const MODEL = process.env.MODEL_NAME;

export const IMAGE_MODEL = process.env.IMAGE_MODEL_NAME;

export const openai = createOpenAI({
  apiKey,
  baseURL,
});


Next Steps

To explore individual capabilities with code examples, check the following sections in the sidebar:

Best Practices

  • Store API keys in environment variables.
  • Reuse a single OpenAI client instance throughout your application.
  • Use streaming for chat interfaces to improve user experience.
  • Validate generation parameters before making requests.
  • Handle API errors gracefully with retry or fallback logic.
  • Use system prompts to define consistent assistant behavior.
  • Keep prompts concise and specific for better model responses.

Supported Features

FeatureSupported
Text Generation
Streaming Responses
System Prompts
Temperature
Top P
Top K
Max Tokens
Frequency Penalty
Presence Penalty
Seed
Stop Sequences
Image Generation
Vision (Image Input)
OpenAI-Compatible Base URL

Next Steps

You are now ready to build applications using the Vercel AI SDK with any OpenAI-compatible endpoint. Explore additional SDK capabilities such as structured outputs, tool calling, agents, and chat history management as your application grows.