Deploy a ChatGPT Chat Application with Next.js and Vercel AI SDK

First, create a new Next.js project with npx create-next-app@latest and enable Tailwind CSS during setup. Install the AI packages ai and @ai-sdk/openai, then add your OpenAI API key to .env.local.

Update app/page.js to use the useChat hook from ai/react, rendering messages and an input form. Create app/api/chat/route.js that streams responses using streamText and returns result.toAIStreamResponse().

Run the development server with npm run dev and verify the chat UI locally. Deploy to Vercel by running vercel, configure the OPENAI_API_KEY in Vercel Settings, and redeploy to activate the environment variable.

For a faster five‑minute deployment, use the official next-openai example on GitHub and click the Deploy button, then set the required environment variables.

The Vercel AI SDK provides core functions such as generateText, streamText, generateObject, and streamObject, with streamText being ideal for chat scenarios. It also offers RSC utilities like createStreamableValue and UI hooks ( useChat, useCompletion, useAssistant) to simplify stream handling and UI updates.

Overall, leveraging Vercel AI SDK enables rapid integration of AI capabilities into Next.js front‑end projects, handling streaming responses efficiently and providing a solid foundation for building AI‑enhanced web applications.