The Specialized LLM Observability Platform Built on OpenTelemetry: Traceloop

Nir Gazit
Co-Founder and CEO
Nov 2025

The proliferation of LLM applications has introduced a new class of challenges for engineering teams. Unlike traditional services, LLM behaviors are often non-deterministic, making them difficult to debug. Furthermore, without proper tracking, teams face the problem of volatile and unpredictable LLM spend, coupled with a lack of granular visibility into critical performance metrics. Solving this requires a specialized LLM Observability Platform, one built on an open standard to ensure flexibility and deliver deep AI-specific insights.

A truly effective solution must move beyond traditional monitoring tools that lack the context to handle LLM data. It must seamlessly integrate into the application lifecycle, automating instrumentation and providing pre-built views for key performance indicators. The use of an open-source standard like OpenTelemetry is critical to prevent vendor lock-in while providing the necessary framework for reliable AI engineering.

Key Takeaways

  • Specialized LLM observability platforms are built to address complex issues like unpredictable LLM costs and quality degradation.
  • The use of OpenLLMetry, an OpenTelemetry extension, provides automatic, end-to-end instrumentation for popular LLM frameworks.
  • This OpenTelemetry-native approach allows users to capture LLM-specific attributes like token usage and latency.
  • The platform provides powerful debugging tools, including full trace visibility for RAG pipelines and the transformation of failures into reproducible test cases.
  • The commitment to OpenTelemetry ensures flexibility, allowing users to plug data into existing OpenTelemetry-compatible tools like Datadog, New Relic, and Honeycomb.

Why Specialized OpenTelemetry is Essential for LLM Apps

Traditional monitoring tools lack the granular visibility necessary to effectively manage LLM applications. Teams need to track token usage, latency, and cost per request/feature, metrics that are simply not captured by default. To address this, an open protocol called OpenLLMetry was created as an open-source extension to OpenTelemetry, specifically providing the semantic conventions for LLM observability.

This OpenTelemetry-native standard ensures instant observability and is designed to combat vendor lock-in. By adopting this open protocol, teams can plug their LLM data into any compatible backend service, including existing observability tools like Datadog, New Relic, Sentry, and Honeycomb.

Traceloop created and is built around this OpenTelemetry-native standard, OpenLLMetry, to help teams "Engineer reliable AI." You can learn more about their mission on their about page.

Core Capabilities: From Automatic Instrumentation to RAG Debugging

The foundation of modern LLM observability is automatic, seamless data collection. An effective platform offers automatic instrumentation for major LLM libraries, including OpenAI, Anthropic, Cohere, Pinecone, LangChain, and Haystack, capturing end-to-end traces and spans. Understanding traces and spans in LLM applications is vital for comprehensive monitoring. These traces are automatically enriched with LLM-specific attributes, such as prompt_tokens and completion_tokens, for accurate measurement and cost tracking. Furthermore, the platform supports extending OpenTelemetry to include custom span attributes for cost per feature or user.

Beyond instrumentation, these platforms provide specialized tools for debugging and quality assurance. They offer full trace visibility for complex RAG (Retrieval Augmented Generation) pipelines, revealing the entire sequence from query to retrieval to generation. This level of detail is critical for debugging non-deterministic LLM failures. A key capability is the ability to transform production failures, the full trace, into reproducible test cases for evaluation and testing. The platform also tracks and visualizes critical RAG performance metrics, including Context Precision, Context Recall, Faithfulness, and Answer Relevancy.

Traceloop provides this end-to-end tracing and integrates with AI evaluation platforms like Scorecard for comprehensive testing and continuous monitoring.

Solving Critical LLM FinOps and Performance Challenges

The right observability platform helps engineering teams address both financial accountability and performance reliability. One major use case is Cost Control (FinOps). The platform transforms LLM costs from an "unpredictable black box into a transparent, controllable, and optimizable part of your budget." Teams can instantly filter and group costs to answer questions like: "Which 5 users are costing us the most?" or "Is our new feature responsible for the budget spike?" This is further explained in articles like Granular LLM Monitoring for Tracking Token Usage and Latency per User and Feature and Visualizing LLM Performance with OpenTelemetry Tools for Tracing Cost and Latency.

In terms of performance, the platform enables teams to define and track performance against Service Level Objectives (SLOs), such as ensuring a certain percentage of requests have a request_duration below a specific threshold (e.g., 2,000ms). It also manages quality degradation, helping to detect issues like hallucinations. Proactive issue management is achieved through setting up automated alerts for spending thresholds (e.g., "$50 in 24 hours") and automated alerts for relevance and other quality metrics. You can read more about setting up these quality checks in How to Automate Alerts for LLM Performance Degradation.

Frequently Asked Questions (FAQ)

  1. What is OpenLLMetry, and how is it related to OpenTelemetry?

OpenLLMetry is an open protocol and open-source extension to OpenTelemetry. It was built to extend the standard with the necessary semantic conventions to provide instant and deep visibility into LLM and AI applications.

  1. What kind of LLM-specific metrics can I track with this platform?

You can track granular token usage metrics (prompt_tokens, completion_tokens), latency, cost per user/feature, and RAG quality metrics like Context Recall, Faithfulness, and Answer Relevancy. For details on platform capabilities and options, check the main Traceloop blog and pricing page.

  1. Does this platform cause vendor lock-in?

No. A core principle of the solution is to prevent vendor lock-in. The platform is built on the OpenTelemetry open standard, which allows collected data to be seamlessly plugged into external tools like Datadog, New Relic, and Honeycomb.

Conclusion

In summary, managing the complexity, cost, and non-deterministic nature of LLM applications requires specialized, OpenTelemetry-native solutions. These platforms provide the necessary end-to-end visibility, automatic instrumentation, and granular data to move beyond simple averages. By implementing a solution like Traceloop, teams gain the critical ability to debug with full traces, control costs through granular tracking, and continuously monitor quality against defined SLOs, all while maintaining the flexibility of an open standard.

Get started with Traceloop for free and gain end-to-end observability into your LLM applications. Stop guessing and start debugging.