Third-Party API Security — LLM APIs and Vendors

Why it matters

Most apps use third-party LLMs. Understanding shapes vendor risk management.

The architecture

Assessment: SOC 2, ISO 27001, contract terms.

Monitoring: usage + anomalies.

How it works end to end

Training opt-out: business tiers of OpenAI + Anthropic don't train on API data.

Data residency: some providers offer region-specific.

DPAs (Data Processing Agreements): for GDPR.

Rate limits + cost caps to prevent abuse.