Tuesday, February 10, 2026

OCI Generative AI Authentication Explained: Dynamic Groups vs Tenancy API Keys vs New GenAI API Keys

 

Introduction

When working with OCI Generative AI, one of the most common questions engineers struggle with is:

"How exactly should I authenticate when calling GenAI services?"

Should you use:

  • Dynamic Groups with Instance or Resource Principals?

  • The global OCI tenancy API key?

  • Or the newly launched API Keys for OCI Generative AI?

Oracle’s documentation covers each option individually, but the practical differences — especially when agents are involved — are often unclear. This confusion frequently leads to authorization errors like “Authorization failed or requested resource not found”, even when IAM policies appear correct.

In this article, we’ll break down when to use each authentication method, what they can and cannot do, and how to choose the right one for your OCI Generative AI workload.


The Three Authentication Options in OCI Generative AI



1. Dynamic Groups with Instance / Resource Principals

This is the recommended enterprise approach for OCI-native workloads.

How it works

  • Your OCI resource (Compute VM, OKE Pod, Function, etc.) is added to a Dynamic Group

  • IAM policies grant that dynamic group access to Generative AI services

  • Authentication happens automatically via Instance Principal or Resource Principal

Example policy:

Allow dynamic-group GENAI to manage genai-agent-family in tenancy

What this is used for

  • OCI Compute → Generative AI

  • OCI Functions → Generative AI

  • OKE workloads → Generative AI

Supported GenAI features

Model inference
 Embeddings
GenAI Agent Runtime (agents, RAG, tools)
Object Storage integration
Enterprise IAM governance

This is mandatory when calling:

agent-runtime.generativeai.<region>.oci.oraclecloud.com

2. Global OCI Tenancy API Keys

These are the classic OCI user API keys.

How they work

  • API key is generated for an IAM user

  • Requests are signed using OCI’s request signing mechanism

  • Typically used from laptops, CI/CD, or external systems

Downsides

  • Long-lived credentials

  • Manual key rotation

  • Not ideal for workloads running inside OCI

Supported GenAI features

Model inference
Limited agent support
Not recommended for production agents

Oracle generally discourages this approach for GenAI workloads running on OCI resources.


3. Newly Launched OCI Generative AI API Keys

In early 2025, Oracle introduced service-specific API keys for Generative AI:

🔗 Official announcement:
https://docs.oracle.com/en-us/iaas/releasenotes/generative-ai/api-keys.htm

These are not OCI tenancy API keys.

What makes them different

  • Scoped only to OCI Generative AI

  • Simple Bearer-token authentication

  • Similar in concept to OpenAI or Anthropic API keys

  • No OCI request signing required

Supported endpoints

https://inference.generativeai.<region>.oci.oraclecloud.com

Supported GenAI features

Chat completion
Text generation
Embeddings

Critical limitation

GenAI Agent Runtime is NOT supported

API keys cannot authenticate against:

agent-runtime.generativeai.<region>.oci.oraclecloud.com

This means:

  • No agents

  • No RAG

  • No tools

  • No memory

  • No OCI service integrations

Oracle Generative AI has two distinct service planes:

PlanePurposeAuth supported
 Inference Plane  Direct model calls   API Keys, IAM
Agent Runtime Plane   Agents, tools, RAG    IAM only

The new API keys work only for inference, while agents are treated as first-class OCI resources, governed by IAM.


Which One Should You Use?

Use Dynamic Groups + Instance Principal if:

  • You are calling GenAI Agents

  • Your workload runs inside OCI

  • You need RAG, tools, Object Storage access

  • You want enterprise-grade security

Use GenAI API Keys if:

  • You only need model inference

  • You are calling from outside OCI

  • You want quick experimentation

  • You do NOT need agents

Avoid Global Tenancy API Keys when possible

They still work, but they are rarely the best option for modern GenAI workloads. These API keys are stored in your resources such as VM and hence poses security risks.


Final Thoughts

OCI Generative AI gives multiple authentication choices — but they are not interchangeable.

The new GenAI API keys simplify access to hosted models, while dynamic groups and instance principals remain the only supported path for GenAI Agents.

Understanding this distinction upfront can save hours of debugging IAM policies and mysterious 404 authorization errors

No comments:

Post a Comment