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About Vercel AI SDK

Vercel AI SDK is an open-source toolkit from the team behind Vercel and Next.js. It provides a unified developer experience for building AI-powered applications, including:
  • Easy integration with multiple model providers (OpenAI, Anthropic, etc.)
  • Support for streaming responses for real-time chat UIs
  • Type-safe APIs with excellent TypeScript support
  • Built-in support for agents, tools, and structured outputs
  • Ready-to-use React/Next.js hooks for managing conversation state
By using the AI SDK, you can avoid handling low-level APIs directly and focus on creating seamless AI-driven experiences in your app.

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How It Works

The AI SDK is split into modular packages:
  • Core API: A unified way to call LLMs and handle outputs
  • Provider Adapters: Packages like @ai-sdk/openai let you plug in specific providers
  • UI Utilities: Hooks such as useChat make it easy to build interactive experiences
  • Tooling / Agents: Support for calling external APIs or chaining workflows
This modular design means you can start small and scale up to more complex AI flows as your application grows.

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When to Use Vercel AI SDK

You should consider using the SDK if:
  • You want to build chatbots, assistants, or agent-like applications quickly
  • You need real-time streaming responses from your models
  • You want cross-provider flexibility without rewriting core logic
  • You prefer type safety and well-structured APIs
For more details, check out the official Vercel AI SDK documentation
  • As AI-SDK Tool
  • As MCP Tool (experimental)

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As a Tool in AI-SDK

Alchemyst can be added to your AI SDK codebase as a regular tool as well, which is the recommended way for developer control.The snippet below shows how to set up a tool using Vercel’s AI SDK, using OpenAI GPT-5-Nano. This tool uses Alchemyst AI SDK under the hood, and exposes a nifty set of tools, letting you control if you want to use memory, context or both (default).This assumes that you have an OpenAI Key and Alchemyst API Key. If you don’t have the Alchemyst API Key, you can get them in the Alchemyst Settings page
aiSdkToolSetup.ts
import { streamText } from 'ai';
import { alchemystTools } from '@alchemystai/aisdk';
const result = await streamText({
  model: "gpt-5-nano",
  prompt: "Remember that my name is Alice",
  tools: alchemystTools("YOUR_ALCHEMYST_AI_KEY", true, true)
});