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How to Use OpenClaw with Azure Foundry OpenAI Using LiteLLM Proxy

Connect OpenClaw AI coding agent to Azure OpenAI using LiteLLM proxy. Use your $5k Azure Sponsorship or MSDN credits with the 124k-star open-source AI assistant. Step-by-step guide with working config.

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title: How to Use OpenClaw with Azure Foundry OpenAI Using LiteLLM Proxy published: true description: Connect OpenClaw AI coding agent to Azure OpenAI using LiteLLM proxy. Use your $5k Azure Sponsorship or MSDN credits with the 124k-star open-source AI assistant. Step-by-step guide with working config. tags: azure, llm, ai, opensource series: Azure AI Integration Guides

TL;DR:

OpenClaw doesn't natively support Azure OpenAI. This guide shows you how to use LiteLLM as a proxy to route OpenClaw requests to Azure OpenAI, letting you use your Azure credits ($150 free tier, startup credits, enterprise subscriptions).

The Problem

OpenClaw is an incredible open-source AI coding agent with 124k+ GitHub stars. But when you try to configure it with Azure OpenAI, you'll find... it's not supported.

┌─────────────────────────────────────────────────────────┐
│  OpenClaw Model Selection                               │
├─────────────────────────────────────────────────────────┤
│  ✓ OpenAI (gpt-4o, gpt-4o-mini)                        │
│  ✓ Anthropic (claude-3.5-sonnet, claude-3-opus)        │
│  ✓ Google (gemini-2.0-flash, gemini-1.5-pro)           │
│  ✓ DeepSeek, Groq, Mistral, xAI...                     │
│  ✗ Azure OpenAI  ← Not available!                      │
│  ✗ Azure AI Foundry                                     │
└─────────────────────────────────────────────────────────┘

This is a problem if you have:

  • Azure Sponsorship credits ($5,000 for startups/MVPs)
  • MSDN/Visual Studio subscription ($150/month Azure credits)
  • Enterprise policies requiring Azure-hosted models
  • Regional compliance needs (Azure has 60+ regions)

I've raised a feature request (#6056) for native Azure support, but until then, here's the workaround.

The Solution: LiteLLM Proxy

LiteLLM is an OpenAI-compatible proxy that translates API calls to 100+ LLM providers, including Azure OpenAI.

┌──────────────┐      ┌──────────────┐      ┌──────────────────┐
│   OpenClaw   │ ──── │   LiteLLM    │ ──── │  Azure OpenAI    │
│   Agent      │      │   Proxy      │      │  (your credits)  │
└──────────────┘      └──────────────┘      └──────────────────┘
     :18789              :4000           eastus.api.cognitive...
        │                   │                      │
        └── OpenAI API ─────┘                      │
                            └── Azure API ─────────┘

OpenClaw thinks it's talking to OpenAI. LiteLLM translates to Azure format. You use Azure credits.

Prerequisites

Requirement Details
Azure OpenAI resource With GPT-4o or GPT-4o-mini deployed
Server/VM Ubuntu 22.04 recommended
Node.js 22+ for OpenClaw
Python 3.9+ for LiteLLM

Get Your Azure OpenAI Details

From Azure Portal → Azure OpenAI → your resource:

Setting Example
Endpoint https://eastus.api.cognitive.microsoft.com
API Key EuRBGeGG... (Keys and Endpoint section)
Deployment name gpt4o-mini (Model deployments section)
API Version 2024-10-21

Step 1: Install LiteLLM

# Create virtual environment
python3 -m venv ~/litellm-venv
source ~/litellm-venv/bin/activate

# Install LiteLLM
pip install 'litellm[proxy]'

Step 2: Configure LiteLLM

Create ~/litellm_config.yaml:

model_list:
  - model_name: gpt-4o-mini
    litellm_params:
      model: azure/gpt4o-mini          # "azure/" prefix + deployment name
      api_base: https://eastus.api.cognitive.microsoft.com
      api_key: YOUR_AZURE_OPENAI_KEY   # Replace with your key
      api_version: "2024-10-21"

  - model_name: gpt-4o
    litellm_params:
      model: azure/gpt4o
      api_base: https://eastus.api.cognitive.microsoft.com
      api_key: YOUR_AZURE_OPENAI_KEY
      api_version: "2024-10-21"

general_settings:
  master_key: "sk-litellm-your-secret-key"  # Any string you choose

litellm_settings:
  drop_params: true  # CRITICAL: OpenClaw sends params Azure doesn't support

Important: The drop_params: true setting is critical. OpenClaw sends parameters like store that Azure OpenAI rejects. This setting tells LiteLLM to silently drop unsupported parameters.

Step 3: Test LiteLLM

# Start LiteLLM
litellm --config ~/litellm_config.yaml --port 4000

# In another terminal, test it
curl http://localhost:4000/v1/chat/completions \
  -H "Authorization: Bearer sk-litellm-your-secret-key" \
  -H "Content-Type: application/json" \
  -d '{
    "model": "gpt-4o-mini",
    "messages": [{"role": "user", "content": "Say hello!"}]
  }'

You should get a response from Azure OpenAI.

Step 4: Install OpenClaw

# Install pnpm if needed
curl -fsSL https://get.pnpm.io/install.sh | sh -

# Install OpenClaw
pnpm add -g @anthropic/openclaw

# Verify installation
openclaw --version

Step 5: Configure OpenClaw

This is where it gets tricky. OpenClaw's custom provider config requires specific fields that aren't well-documented.

Edit ~/.openclaw/openclaw.json:

{
  "gateway": {
    "mode": "local",
    "port": 18789,
    "auth": {
      "token": "your-gateway-token"
    }
  },
  "agents": {
    "defaults": {
      "model": {
        "primary": "litellm/gpt-4o-mini"
      },
      "models": {
        "litellm/gpt-4o-mini": {
          "alias": "GPT-4o Mini (Azure)"
        }
      }
    }
  },
  "models": {
    "mode": "merge",
    "providers": {
      "litellm": {
        "baseUrl": "http://localhost:4000/v1",
        "apiKey": "sk-litellm-your-secret-key",
        "api": "openai-completions",
        "models": [
          {
            "id": "gpt-4o-mini",
            "name": "GPT-4o Mini (Azure)",
            "reasoning": false,
            "input": ["text", "image"],
            "contextWindow": 128000,
            "maxTokens": 16384
          },
          {
            "id": "gpt-4o",
            "name": "GPT-4o (Azure)",
            "reasoning": false,
            "input": ["text", "image"],
            "contextWindow": 128000,
            "maxTokens": 16384
          }
        ]
      }
    }
  }
}

Critical Configuration Points

Field Value Why It Matters
models.mode "merge" Merges custom providers with built-in ones
providers.litellm.api "openai-completions" Tells OpenClaw which API format to use
agents.defaults.models Model alias object Required for model selection UI
model.primary "litellm/gpt-4o-mini" Provider prefix + model ID

Missing the api field causes a cryptic error: No API provider registered for api: undefined. I've raised issue #6054 to improve this error message.

Step 6: Set Environment Variables

Create ~/.openclaw/.env:

OPENAI_API_KEY=sk-litellm-your-secret-key
OPENAI_BASE_URL=http://localhost:4000/v1
OPENCLAW_GATEWAY_TOKEN=your-gateway-token

Step 7: Run as Systemd Services (Production)

LiteLLM Service

Create /etc/systemd/system/litellm.service:

[Unit]
Description=LiteLLM Proxy for Azure OpenAI
After=network.target

[Service]
Type=simple
User=your-username
WorkingDirectory=/home/your-username
ExecStart=/home/your-username/litellm-venv/bin/litellm \
    --config /home/your-username/litellm_config.yaml \
    --port 4000
Restart=always
RestartSec=10

[Install]
WantedBy=multi-user.target

OpenClaw Service

Create /etc/systemd/system/openclaw.service:

[Unit]
Description=OpenClaw Gateway
After=network.target litellm.service
Requires=litellm.service

[Service]
Type=simple
User=your-username
WorkingDirectory=/home/your-username/openclaw-workdir
EnvironmentFile=/home/your-username/.openclaw/.env
ExecStart=/home/your-username/.local/share/pnpm/openclaw gateway \
    --port 18789
Restart=always
RestartSec=10

[Install]
WantedBy=multi-user.target

Enable and start:

sudo systemctl daemon-reload
sudo systemctl enable litellm openclaw
sudo systemctl start litellm openclaw

Step 8: Verify It Works

# Check services
sudo systemctl status litellm openclaw

# Check LiteLLM logs (should show 200 OK responses)
sudo journalctl -u litellm -f

# Open OpenClaw chat
openclaw chat

You should see responses from GPT-4o-mini, powered by your Azure credits!

Troubleshooting

Error: "azure does not support parameters: ['store']"

Fix: Add drop_params: true to litellm_settings in your config.

litellm_settings:
  drop_params: true

Error: "No API provider registered for api: undefined"

Fix: Add "api": "openai-completions" to your custom provider in openclaw.json.

Error: "401 Incorrect API key" pointing to api.openai.com

Fix: OpenClaw is ignoring your LiteLLM proxy. Ensure:

  1. Custom provider has baseUrl set correctly
  2. OPENAI_BASE_URL is set in environment
  3. Model reference uses provider prefix: litellm/gpt-4o-mini

Empty responses (agent completes but no output)

Fix: Usually the drop_params: true issue. Check LiteLLM logs:

sudo journalctl -u litellm -n 50

Cost Comparison

Model OpenAI Direct Azure OpenAI
GPT-4o-mini input $0.15/1M $0.15/1M
GPT-4o-mini output $0.60/1M $0.60/1M
GPT-4o input $2.50/1M $2.50/1M
GPT-4o output $10.00/1M $10.00/1M

Same pricing, but Azure lets you use:

  • Sponsorship credits ($5,000 for startups)
  • MSDN credits ($150/month)
  • Enterprise agreements
  • Reserved capacity discounts

Conclusion

Until OpenClaw adds native Azure OpenAI support (vote on #6056), LiteLLM is the bridge you need. The setup takes about 15 minutes, and then you get the full OpenClaw experience powered by your Azure credits.

Architecture recap:

┌─────────────────────────────────────────────────────────────┐
│                      Your Infrastructure                     │
├─────────────────────────────────────────────────────────────┤
│                                                              │
│  ┌──────────┐    ┌──────────┐    ┌─────────────────────┐   │
│  │ OpenClaw │───▶│ LiteLLM  │───▶│    Azure OpenAI     │   │
│  │  :18789  │    │  :4000   │    │ eastus.cognitive... │   │
│  └──────────┘    └──────────┘    └─────────────────────┘   │
│       │                                     │               │
│       │         OpenAI-compatible           │               │
│       └────────────  API  ──────────────────┘               │
│                                                              │
│  Uses: $5k Azure Sponsorship / MSDN Credits / Enterprise   │
└─────────────────────────────────────────────────────────────┘

Resources

Let's Discuss 💬

I'd love to hear from you:

  • Are you using Azure credits for AI development? What's your setup?
  • Have you tried other LLM proxies? How does LiteLLM compare?
  • What AI tools need Azure integration? Drop a comment!

Help the community:

  1. ⭐ Star OpenClaw on GitHub
  2. 👍 Upvote Issue #6056 for native Azure support
  3. 🔄 Share this guide with developers who have Azure credits

Keywords

Azure OpenAI · LiteLLM Proxy · OpenClaw Configuration · AI Coding Agent · GPT-4o Azure · Azure Credits · LLM Gateway · Open Source AI · MSDN Credits AI · Azure Sponsorship

Published by GDSKS • Lead Architect, Founder at GLINCKER • Building GLINR Platform

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