A practical guide to OpenAI API keys in 2025

Kenneth Pangan
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Kenneth Pangan

Amogh Sarda
Reviewed by

Amogh Sarda

Last edited October 13, 2025

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OpenAI's powerful language models, like GPT-4, are changing how we interact with technology. To tap into these models and build your own AI-powered applications, you need one crucial component: an OpenAI API key.

Think of an API key as a secret password. It's a unique identifier that authenticates your requests to OpenAI's servers, allowing your application to access their models. It also helps OpenAI track your usage for billing and monitoring purposes.

This guide will walk you through everything you need to know about OpenAI API keys, from getting your first key to managing it securely.

What are OpenAI API keys?

An OpenAI API key is a unique alphanumeric string that developers use to authenticate their requests to the OpenAI API. When you send a request to use a model like GPT-4 or DALL-E, you include this key. The key tells OpenAI who is making the request, ensuring that only authorized users can access the service.

These keys are essential for:

  • Authentication: Proving your identity to OpenAI's servers.

  • Usage tracking: Allowing OpenAI to monitor how many requests you make for billing.

  • Security: Preventing unauthorized access to your account and its associated resources.

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Image: A simple diagram showing an application making a request with an API key to the OpenAI server, which then returns a response.

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How to get your OpenAI API key

Getting an OpenAI API key is a straightforward process. Here’s a step-by-step guide to get you started.

Step 1: Create an OpenAI account

First, you need an OpenAI account. If you don't have one, head over to the OpenAI platform and sign up. You can use your email address or a Google, Microsoft, or Apple account.

Step 2: Navigate to the API keys section

Once you're logged in, look for the "API keys" section in the left-hand navigation menu. This is your central hub for managing all your keys.

Step 3: Create a new secret key

In the API keys dashboard, click the "Create new secret key" button. You’ll be prompted to give your key a name. It's a good practice to name your key based on the project you'll be using it for (e.g., "My-Chatbot-Project"). This helps you keep track of which keys are used where.

Step 4: Copy and save your key

After naming your key, OpenAI will generate it and display it on your screen. This is the only time you will be able to see the full key. Make sure to copy it immediately and store it in a secure location, like a password manager or an environment variable file. Do not share it publicly or commit it to a version control system like Git.

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Video: A short screen recording walking through the steps of creating a new OpenAI API key on the platform dashboard.

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Best practices for managing your OpenAI API keys

Your OpenAI API keys are powerful. If they fall into the wrong hands, they could be used to make requests on your behalf, leading to unexpected charges and potential misuse. Here are some essential best practices for keeping your keys safe.

Keep your keys confidential

Treat your API keys like passwords. Never hardcode them directly into your application's source code. If you push your code to a public repository like GitHub, your key will be exposed for anyone to find and use.

Use environment variables

The recommended way to handle API keys is to store them as environment variables. An environment variable is a variable stored outside your application's code, within the environment where your code is running.

For example, you can create a .env file in your project's root directory:


OPENAI_API_KEY="your-secret-key-goes-here"  

Then, you can load this variable into your application using a library like "dotenv" (for Node.js) or by accessing "os.environ" (for Python).

Rotate your keys regularly

It's a good security practice to periodically delete old keys and generate new ones. This process, known as key rotation, limits the damage that can be done if a key is ever compromised. If you suspect a key has been exposed, you should revoke it immediately from your OpenAI dashboard and create a new one.

Set up usage limits

To prevent unexpected costs, OpenAI allows you to set usage limits on your account. You can configure both hard limits (which stop API requests once reached) and soft limits (which send you an email notification). This is a crucial step to control your spending, especially when you are just starting.

Troubleshooting common API key issues

Even with careful management, you might run into some issues with your OpenAI API keys. Here are a few common problems and how to solve them.

Invalid authentication (401 error)

This is the most common error. It usually means your API key is incorrect, has been revoked, or is not being sent correctly in your API request.

  • Check your key: Double-check that you have copied the key correctly and there are no extra spaces or characters.

  • Verify the key is active: Go to your API keys dashboard on the OpenAI platform and ensure the key you're using hasn't been deleted.

  • Check your code: Make sure you are correctly including the key in the "Authorization" header of your request as a "Bearer" token.

Rate limit exceeded (429 error)

This error occurs when you've sent too many requests in a short period. OpenAI imposes rate limits to ensure fair usage for everyone.

  • Check your usage tier: Your rate limit depends on your usage tier. You can check your limits in your account settings.

  • Implement exponential backoff: If you get a 429 error, wait for a short period before retrying the request. An exponential backoff strategy involves increasing the wait time between retries, which helps to smooth out request bursts.

You exceeded your current quota (429 error)

This is a different type of 429 error that indicates you've run out of credits or hit your monthly spending limit.

  • Check your billing information: Go to the "Billing" section of your OpenAI account to check your current usage and add payment details or increase your monthly budget if necessary.

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Infographic: A flowchart showing steps to troubleshoot common OpenAI API key errors like 401 and 429.

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Managing your API usage and costs

OpenAI API keys are directly linked to your account's billing. Understanding how usage is measured and how to monitor it is key to avoiding surprise bills.

How usage is measured

Usage is typically measured in "tokens." For language models, a token is roughly equivalent to four characters of text in English. Both your input (the prompt you send) and the output (the model's response) count towards your total token usage. Different models have different pricing per token.

Monitoring your usage

The OpenAI platform provides a detailed usage dashboard where you can see how many tokens you've used over different periods. You can filter by model and time frame to get a clear picture of your consumption. Regularly checking this dashboard helps you stay on top of your costs.

Final thoughts

OpenAI API keys are your gateway to building incredible applications with some of the most advanced AI models in the world. By understanding how to generate, manage, and secure them, you can build confidently and responsibly. Always prioritize security by keeping your keys private, use environment variables, and monitor your usage regularly to control costs. With these best practices in mind, you're ready to start innovating with the power of OpenAI.

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Kenneth Pangan

Writer and marketer for over ten years, Kenneth Pangan splits his time between history, politics, and art with plenty of interruptions from his dogs demanding attention.