TL;DR
LiteLLM and OpenRouter are not competing products - LiteLLM is a self-hosted open-source proxy you run yourself, OpenRouter is a managed cloud aggregator. The comparison only makes sense if you understand which problem you're actually trying to solve
LiteLLM's ceiling: SSO and team-level budget enforcement are behind the enterprise license, Redis dependency for distributed rate limiting has a failure mode worth knowing about, YAML config gets unwieldy at scale
OpenRouter's ceiling: everything lives in OpenRouter's infrastructure, no self-hosted models, no team-level governance, a 5.5% credit purchase fee that compounds at high volume
Where we landed: neither was the right long-term answer for our setup - this post explains why






