Learn · bring-your-own-key AI terminal
What is a BYOK AI terminal?
By Lalla Asmaa Alaoui, founder of Mel · Updated
A BYOK (bring-your-own-key) AI terminal lets you connect your own API key from a provider such as Anthropic, OpenAI or Google. That provider then bills your AI usage directly, not the terminal.
BYOK is the most direct way to pay for AI: the provider meters your usage at its own price. It suits people who already have provider accounts, want to see exactly what they spend, or need a specific provider for company reasons.
How BYOK works
- Create an API key in your provider's console.
- Add the key to the terminal. The terminal uses it when its agents call that provider's models.
- Pay the provider. Usage appears on your provider bill.
- Watch your usage in the provider's console, where you can usually also set budget alerts.
BYOK or hosted credits?
| Bring your own key | Hosted credits | |
|---|---|---|
| Who bills the AI usage | The provider | The tool |
| Setup | One key per provider | Sign in and go |
| Several providers | Several keys, several bills | One balance |
| Best for | Developers with provider accounts | People who want one account and one bill |
Neither is better for everyone. Many people start with one key from one provider, then move to hosted credits when they want several providers without several bills.
How Mel does it
Mel is free with your own API key. You pay your provider and pay Mel nothing.
- Keys for five model families: Claude, GPT, Gemini, DeepSeek and Qwen.
- Hosted credits when you want them: Pro is $20/month and Max $200/month.
- A team pool instead of many keys: Business has shared credits and one invoice, at $50 a seat a month.
How BYOK terminals and agents compare
| Typical subscription AI terminal | Open source BYOK agents | Mel | |
|---|---|---|---|
| Use your own key | Varies, sometimes paid plans only | Yes | Yes, free |
| Hosted credits as an option | Yes | Some offer a paid gateway | Yes: Pro, Max, Business |
| Team of agents | Varies | Varies | Yes |
| Model families | Varies | Many | Claude, GPT, Gemini, DeepSeek, Qwen |
| Shape | Terminal app | Terminal, editor or desktop, by tool | Terminal app for Mac, Windows, Linux, plus VS Code |
Keeping your API key safe
- Never paste a key into a chat or a repo. Add it in the tool's settings.
- Use a separate key per tool, so you can revoke one without breaking the others.
- Set a budget alert in your provider's console.
- Rotate keys if a laptop is lost or a teammate leaves.
FAQ
What is a bring-your-own-key AI terminal? An AI terminal where you connect your own API key, so the AI provider bills you directly for usage.
Is a BYOK AI terminal really free? The terminal can be, and Mel is. The AI usage is billed to you by your provider.
Which keys can I use with Mel? Mel works with Claude, GPT, Gemini, DeepSeek and Qwen.
Can I mix BYOK and hosted credits? Mel offers both: free with your own key, or Pro and Max with hosted credits.
Does BYOK work for teams? It can, but each person or provider means another bill. Mel Business gives a team shared credits and one invoice instead.
Mel – the agentic terminal · openmel.dev. A multi-agent, multi-model AI terminal for Mac, Windows, Linux and VS Code. Free with your own API key.
Lalla is a hands-on tech founder, agentic infrastructure architect and the vision behind Mel.
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