How Load Balancers Work
A load balancer sits between users and your application servers, receiving all incoming requests and forwarding each to one of the backend instances based on a distribution algorithm. The most common algorithm is round robin: each new request goes to the next server in a rotating sequence, distributing load evenly across all healthy instances. Weighted round robin assigns different weights to servers of different sizes, sending proportionally more traffic to more powerful instances. Least connections sends each new request to the instance with the fewest active connections, which is more appropriate for requests with variable processing time, such as LLM inference. IP hash or consistent hashing always routes requests from the same source IP to the same backend instance, useful for maintaining session affinity when session state is stored in application memory rather than an external store. Health checks are a critical component: the load balancer periodically checks that each backend instance is responding correctly and removes unhealthy instances from the pool automatically, routing traffic only to instances passing the health check. This gives load balancing its reliability benefit: if one instance crashes, the load balancer detects it and stops sending traffic to it within seconds.
Layer 4 vs Layer 7 Load Balancing
Load balancers operate at different network layers, which affects what they can inspect and act on. Layer 4 load balancers operate at the transport layer, making routing decisions based on IP addresses and TCP or UDP ports without looking at the content of the traffic. They are fast and simple but cannot make routing decisions based on HTTP path, headers, or content. Layer 7 load balancers operate at the application layer, inspecting HTTP request content including URL paths, headers, cookies, and request body. This enables much more sophisticated routing: sending requests for the API to one backend cluster while sending requests for static assets to a different backend, routing authenticated users differently from unauthenticated users, or directing specific AI workflow requests to a GPU-enabled backend while routing standard web requests to cheaper CPU instances. For AI products, Layer 7 load balancing is almost always what you need. AWS Application Load Balancer (ALB), GCP Load Balancing, and Nginx are all Layer 7 load balancers. The ability to route requests by path or header is essential for directing LLM inference requests to appropriate backends while keeping the web application layer separate.
Load Balancing Long-Running LLM Requests
Standard load balancer timeout configurations are designed for web requests that complete in hundreds of milliseconds. LLM inference requests, particularly for complex prompts or long-context completions, can take 30-120 seconds. If your load balancer times out connections before the LLM API call completes, users see mysterious connection errors rather than the expected AI response. Configure load balancer timeouts to accommodate your LLM's longest expected response time, with a buffer. For AWS ALB, configure the idle timeout setting to at least 300 seconds for AI product backends. For Nginx as a reverse proxy, configure proxy_read_timeout to match. For streaming LLM responses where tokens arrive progressively, configure your load balancer to handle HTTP/1.1 chunked transfer encoding and Server-Sent Events correctly. Some load balancers require explicit configuration to avoid buffering streaming responses, which would negate the user experience benefit of streaming. Verify your streaming response behaviour through the load balancer in a staging environment before deploying to production.
Health Checks for AI Backends
Health check configuration is critical for load balancers to correctly identify healthy and unhealthy instances. A basic health check pings an endpoint and expects a 200 response. For AI products, a more meaningful health check verifies that the AI dependencies are actually working, not just that the web server is running. A deep health check for an AI product might verify that the database connection pool has available connections, that the vector database is reachable and responding within an acceptable latency, and that the LLM API can be reached (without making a full inference call, which would be expensive). The health check endpoint at your application level should return 200 if all critical dependencies are healthy and 503 if any critical dependency is unavailable. The load balancer then removes instances from the pool when they return 503, preventing users from being routed to instances that cannot serve requests successfully. Configure the health check interval, failure threshold, and recovery threshold to balance rapid detection of unhealthy instances against removing instances too aggressively during temporary dependency latency spikes.
Load Balancing and Zero-Downtime Deployments
Load balancers are the enabling technology for zero-downtime deployments. The connection draining feature, sometimes called deregistration delay, allows in-flight requests to complete before an instance is removed from the pool during a deployment. When you deploy a new version, new instances are added to the load balancer pool and traffic begins routing to them. Old instances are deregistered with connection draining enabled, meaning the load balancer stops sending new requests to them but allows existing in-flight requests to complete before fully removing the instance. This ensures that a user whose LLM inference request started on the old version completes successfully even as the deployment proceeds. Configure connection draining duration to exceed your maximum expected request duration: for AI products with long LLM inference calls, set draining duration to 300 seconds or more. This is longer than for traditional web applications but ensures that no LLM inference in progress is interrupted by a deployment.
Load Balancing LLM API Calls Across Multiple Providers
An advanced load balancing pattern for AI products is distributing LLM API calls across multiple providers or API keys to increase total throughput capacity beyond what a single provider account allows. If your product is hitting OpenAI rate limits, you can load balance inference requests across multiple OpenAI API keys (each with independent rate limits), multiple provider tiers such as OpenAI plus Azure OpenAI, or multiple model providers depending on which is available. LLM gateway products including LiteLLM, Portkey, and OpenRouter implement this pattern as a managed service, providing a single API endpoint that internally routes to multiple backends with failover, load balancing, and cost tracking. Implementing this at the application layer rather than a network load balancer layer is appropriate because routing decisions depend on AI-specific context such as which provider supports the required model, current rate limit status, and per-request cost considerations that a network load balancer cannot inspect.