Improving Performance and Reliability in Large-Scale Azure OpenAI Workloads
The Challenge
Large-scale generative AI deployments can stretch system boundaries — especially when thousands of concurrent requests require both high throughput and low latency.
In one such production environment, GPT-4o-mini deployments running under Provisioned Throughput Units (PTUs) began showing sporadic 408 (timeout) and 429 (throttling) errors. Requests that normally completed in seconds were occasionally hitting the 60-second timeout window, causing degraded experiences and unnecessary retries.
Initial suspicion pointed toward PTU capacity limitations, but deeper telemetry revealed a different cause.
What the Data Revealed
Using Azure Data Explorer (Kusto), API Management (APIM) logs, and OpenAI billing telemetry, a detailed investigation uncovered several insights:
- Latency was not correlated with PTU utilization: PTU resources were healthy and performing within SLA even during spikes.
- Time-Between-Tokens (TBT) stayed consistently low (~8–10 ms): The model was generating tokens steadily.
- Excessive token output was the real bottleneck: Requests generating 6K–8K tokens simply required more time than allowed in the 60-second completion window.
In short — the model wasn’t slow; the workload was oversized.
The Optimization Opportunity
The analysis opened a broader optimization opportunity:
- Balance token length with throughput targets.
- Introduce architectural patterns to prevent timeout or throttling cascades under load.
- Enforce automatic token governance instead of relying on client-side discipline.
The Solution
Three engineering measures delivered immediate impact: token optimization, spillover routing, and policy enforcement.
- Right-size the Token Budget
- Empirical throughput for GPT-4o-mini: ~33 tokens/sec → ~2K tokens in 60s.
- Enforced max_tokens = 2000 for synchronous requests.
- Enabled streaming responses for longer outputs, allowing incremental delivery without hitting timeout limits.
- Enable Spillover for Continuity
- Implemented multi-region spillover using Azure Front Door and APIM Premium gateways.
- When PTU queues reached capacity or 429s appeared, requests were routed to Standard deployments in secondary regions.
- The result: graceful degradation and uninterrupted user experience.
- Govern with APIM Policies
- Added inbound policies to inspect and adjust max_tokens dynamically.
- On 408/429 responses, APIM retried and rerouted traffic based on spillover logic.
The Results
After optimization, improvements were immediate and measurable:
- Latency Reduction: Significant improvement in end-to-end response times across high-volume workloads
- Reliability Gains: 408/429 errors fell from >1% to near zero.
- Cost Efficiency: Average token generation decreased by ~60%, reducing per-request costs.
- Scalability: Spillover routing ensured consistent performance during regional or capacity surges.
- Governance: APIM policies established a reusable token-control framework for future AI workloads.
Lessons Learned
- Latency isn’t always about capacity: Investigate workload patterns before scaling hardware.
- Token budgets define the user experience: Over-generation can quietly break SLA compliance.
- Design for elasticity: Spillover and multi-region routing maintain continuity during spikes.
- Measure everything: Combine KQL telemetry, latency and token tracking for faster diagnostics.
The Outcome
By applying data-driven analysis, architectural tuning, and automated governance, the team turned an operational bottleneck into a model of consistent, scalable performance.
The result:
- Faster responses.
- Lower costs.
- Higher trust.
A blueprint for building resilient, high-throughput AI systems on Azure.