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LLM-D Explained: How Distributed AI Inference Makes Large Language Models Faster and Cheaper

  • Writer: Jayant Upadhyaya
    Jayant Upadhyaya
  • Jan 27
  • 6 min read

Large Language Models (LLMs) are now used in many real-world applications. These include chatbots, coding assistants, search systems, and Retrieval-Augmented Generation (RAG) tools. As more people use these systems at the same time, a new challenge appears: how to handle many AI requests efficiently.


This article explains LLM-D, an open-source project designed to solve this problem. LLM-D helps AI systems run faster, reduce delays, and lower costs by intelligently distributing AI workloads across infrastructure like Kubernetes. To make this easy to understand, we will use simple examples, clear explanations, and step-by-step ideas.


1. Understanding the Problem: AI Requests at Scale


Airport control tower with digital graphics showing data like latency and throughput, planes on runways labeled "SEARCH," "GENERATE." Twilight scene.
AI image generated by Gemini

Imagine a busy airport. Planes arrive from many places. Some are small local flights, while others are large international planes. Each plane needs to land safely on the correct runway at the right time.


If all planes tried to land randomly, chaos would happen. That is why airports rely on air traffic controllers. These controllers look at each incoming plane and decide:

  • Where it should land

  • When it should land

  • Which runway is best


AI systems face a very similar problem.


2. AI Requests Are Like Airplanes


In AI systems, requests are like airplanes.


A request could be:

  • A small question answered using RAG

  • A large coding task using an AI agent

  • A long conversation with many follow-up steps


Each request needs computing power from an AI model. Some requests are quick and light. Others are heavy and slow.


Without proper control, these requests can slow each other down.


3. What Is AI Inference?


AI inference is the process where a trained AI model:

  1. Receives a prompt

  2. Processes it

  3. Generates a response


Every time you ask an AI a question, inference happens.


In small systems, inference is simple. But in large systems with many users, inference becomes expensive and slow if not handled properly.


4. Why Traditional Load Balancing Fails


Most systems use round-robin load balancing. This means:

  • Requests are sent one by one to available servers

  • Each server gets an equal number of requests


This works well when all requests are similar.

However, AI requests are not uniform.


Some requests:

  • Have many input tokens

  • Produce small outputs


Others:

  • Have small inputs

  • Produce very large outputs


Treating all requests the same causes problems.


5. What Is Inter-Token Latency?


When AI generates text, it produces tokens one by one.

Inter-token latency is the delay between tokens appearing.


If many heavy requests block the system:

  • Users wait longer to see the first token

  • Responses feel slow

  • The experience feels broken


Reducing this delay is very important for real-time AI applications.


6. Introducing LLM-D


GPUs connected in a network sending data to a cloud. Blue-purple tech background with neon circuit patterns creates a futuristic mood.
AI image generated by Gemini

LLM-D is an open-source system designed to manage AI inference more intelligently.


The “D” in LLM-D stands for Distributed.


LLM-D distributes AI workloads across many machines so that:

  • Inference runs faster

  • Costs are lower

  • Performance is more stable


LLM-D is commonly used for:

  • RAG systems

  • AI agents

  • Coding assistants

  • Large-scale AI services


7. Why LLM-D Was Created


As AI usage grew, teams noticed several problems:

  • Inference costs were rising quickly

  • Latency was inconsistent

  • Some users had very slow responses

  • Infrastructure was underused or overloaded


LLM-D was created to fix these issues by making inference smarter, not just bigger.


8. LLM-D and Kubernetes


LLM-D is designed to work on Kubernetes, a platform used to manage large numbers of servers.


Kubernetes allows:

  • Scaling resources up or down

  • Running workloads across clusters

  • Managing GPUs efficiently


LLM-D uses Kubernetes to distribute AI inference across many machines instead of relying on one large server.


9. Different Types of AI Requests


Not all AI requests are the same.

For example:

  • A RAG request might have a large input and small output

  • A coding agent request might generate many tokens over time


These two requests should not be treated equally.

LLM-D understands this difference.


10. The Inference Gateway: The “Air Traffic Controller”


At the center of LLM-D is the inference gateway.


This gateway acts like an air traffic controller:

  • It inspects incoming requests

  • It decides where each request should go

  • It balances the system intelligently


Instead of blindly sending requests to the next server, it makes decisions based on data.


11. Metrics Used for Intelligent Routing


The inference gateway looks at several factors, including:

  • Current system load

  • Predicted latency

  • Request size

  • Cache availability


By using these metrics, LLM-D avoids congestion and delays.


12. What Is Prefix Caching?


Flowchart with colored sections shows data processing. Icons for documents, images, and music link to users. Circuit-like background.
AI image generated by Gemini

Many AI requests share similar text.

For example:

  • Similar prompts

  • Repeated system instructions

  • Common context


Prefix caching stores these shared parts so they do not need to be processed again.


This saves:

  • GPU computation

  • Time

  • Money


LLM-D routes similar requests to servers that already have cached data.


13. Why Caching Reduces Cost


AI inference is expensive because GPUs must perform many calculations.


If the same text is processed repeatedly:

  • Costs increase

  • Performance drops


Caching avoids repeated work, making inference cheaper and faster.


14. Prefill and Decode: Two Phases of Inference


LLM-D splits inference into two phases:


Prefill

  • The model reads and understands the input

  • This step uses a lot of memory


Decode

  • The model generates output tokens

  • This step is repeated many times


Traditional systems treat these phases as one workload. LLM-D separates them.


15. Disaggregating Prefill and Decode


LM-D assigns:

  • Prefill to high-memory GPUs

  • Decode to scalable GPU workers


Both phases share the same KV cache, which stores useful information.


This separation allows:

  • Better hardware usage

  • Faster responses

  • Independent scaling


16. What Is the KV Cache?


The KV (Key-Value) cache stores intermediate data from the model.


Sharing this cache means:

  • Prefill and decode stay in sync

  • Similar requests reuse information

  • Computation is reduced


This is a key part of LLM-D’s efficiency.


17. Endpoint Picker: Choosing the Best Destination


LLM-D uses an endpoint picker to decide where each request goes.


It considers:

  • Which servers are free

  • Which servers have relevant cached data

  • Which path will be fastest


This decision happens automatically for every request.


18. Real Performance Improvements


Split image: Left shows high latency, burning servers; Right shows low latency, efficient servers. Graphs and meters display performance.
AI image generated by Gemini

LLM-D has shown major performance gains.


Examples include:

  • 3× improvement in P90 latency (slowest 10% of requests)

  • 57× improvement in time-to-first-token


These improvements are critical for:

  • Service-level objectives (SLOs)

  • Quality of service (QoS)

  • User satisfaction


19. Why Time to First Token Matters


Users expect AI to respond quickly.


Even if the full answer takes time, seeing the first token quickly:

  • Builds trust

  • Improves experience

  • Feels responsive


LLM-D dramatically improves this metric.


20. Supporting Mission-Critical AI Systems


Many organizations depend on AI for important tasks:

  • Customer support

  • Code generation

  • Decision support

  • Internal tools


Slow or unreliable inference can cause real problems.


LLM-D helps ensure:

  • Predictable performance

  • Lower risk

  • Better uptime


21. Cost Savings Through Smart Distribution


Instead of adding more GPUs:

  • LLM-D makes better use of existing ones


By reducing wasted computation:

  • Hardware costs drop

  • Cloud bills decrease

  • Efficiency increases


This makes AI more sustainable at scale.


22. LLM-D vs Simple Scaling


Traditional scaling means:

  • Add more servers

  • Spend more money


LLM-D focuses on:

  • Smarter routing

  • Better caching

  • Intelligent scheduling


This leads to better results without endless scaling.


23. Why Open Source Matters


LLM-D is open source.


This means:

  • Transparency

  • Community contributions

  • Flexibility


Organizations can inspect, modify, and adapt LLM-D to their needs.


24. Who Benefits from LLM-D?


Four people in a modern office work on laptops showing graphs. A sign reads Stable. Large windows reveal city buildings outside.
AI image generated by Gemini

LLM-D is useful for:

  • AI platform teams

  • Cloud infrastructure teams

  • Companies running large LLM workloads

  • Developers building scalable AI products


It is especially helpful where performance and cost matter.


25. Challenges LLM-D Solves


LLM-D helps solve:

  • Inference bottlenecks

  • High GPU costs

  • Latency spikes

  • Uneven workload distribution


26. Best Practices When Using LLM-D


To get the most value:

  • Monitor latency metrics

  • Enable caching

  • Separate prefill and decode

  • Tune routing policies

  • Test under load


Good configuration matters.


27. LLM-D and the Future of AI Infrastructure


As AI usage grows:

  • Inference efficiency becomes critical

  • Costs must be controlled

  • Performance must stay consistent


Systems like LLM-D represent the future of AI infrastructure.


28. Simple Summary


LLM-D treats AI inference like air traffic control:

  • It understands different request types

  • It routes them intelligently

  • It avoids congestion

  • It improves speed and lowers cost


By distributing workloads across Kubernetes and using smart caching and routing, LLM-D makes large-scale AI systems practical and reliable.


29. Final Thoughts


Building AI models is only part of the challenge. Running them efficiently at scale is just as important.


LLM-D provides a powerful solution for managing AI inference in real-world systems. It improves performance, reduces cost, and ensures a better experience for users.


For teams running large AI workloads, LLM-D is a key building block for the future.






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