On October 28, 2026, Vercel introduced Virtual Models on AI Gateway, a new feature that abstracts model strings and configurations for applications and developers. The capability allows teams to manage model selection, fallbacks, and Zero Data Retention centrally using a single virtual model ID.
Centralized Model Management
Virtual Models allow developers to assign a virtual model ID to an agent task and pass it as the model string wherever the task is called. When new models become available, developers can change the underlying model in AI Gateway without needing code changes or redeploys. Vercel stated that applications and agents pick up the new configuration automatically within a few minutes.
According to Vercel, 125 new models from more than 10 labs became available on AI Gateway over the previous 90 days. Virtual Models move model selection and configuration directly into AI Gateway to streamline switching between providers.
Governance and Controls
Platform and security teams can use Virtual Models to centrally govern and test models and settings. Settings configured on a virtual model override the same settings in a request, preventing callers from overriding provider orders, fallbacks, or service tiers.
Requirements such as Zero Data Retention are enforced centrally even if a request explicitly sets the parameter to false. Additionally, spend and usage data for each task are tracked on the Virtual Models page.
Compatibility and Setup
Virtual Models work with every model type on AI Gateway, including image, video, speech, embedding, and realtime models. They are compatible with the AI SDK as well as OpenAI- and Anthropic-compatible APIs.
Developers can create a virtual model from their team dashboard or by using the Vercel CLI.
What to do
- Create a virtual model from your team dashboard or with the Vercel CLI.
Key facts and where they come from
- Vercel introduced Virtual Models on AI Gateway on October 28, 2026.
Today, we are introducing Virtual Models on AI Gateway.
- In the 90 days prior to the announcement, 125 new models from more than 10 labs became available on AI Gateway.
In the last 90 days, 125 new models from more than 10 labs became available on AI Gateway.
