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Cloud API key storage for AI agents: how it works and why it matters

Cloud API key storage keeps your model keys out of the agent, the logs, and the prompts. A practical look at the vault model and how it compares to a .env file.

Updated 2026-08-22Reading time 5 min

Three ways people store keys today

ApproachRiskRecovery
Hard-coded in sourceKey is in git history foreverRotate and rewrite everything
.env fileCopied to every machine and backupFind every copy and rotate
Cloud vault + proxyKey never leaves the platformOne click, nothing else to touch

What the vault actually stores

The vault keeps provider credentials encrypted at rest with AES-256-GCM. Decryption happens only for the duration of a single model call, in memory, and the key is discarded straight after.

Your agent gets a signed device token instead. That token can be revoked without touching the provider, which matters when a laptop is lost or a teammate leaves.

The call path, step by step

  1. Agent sends a chat request with its device token.
  2. The platform checks the token, the agent’s budget, and the policy.
  3. If allowed, it decrypts the key and calls the provider.
  4. The provider’s response is streamed back to your agent.
  5. The key is wiped from memory; the request is added to the audit log.

When a .env is still fine

If you run everything on one machine you trust and never commit the file, a .env works. The vault earns its keep when you have several devices, share access with a team, or hand the agent shell access — because then one key in the wrong place is a real incident, not a theoretical one.

Rotation and revoke

In the vault, rotating a key means pasting the new one once. Every device picks it up on the next request. You never edit a config on a machine you are not sitting at.