Self-Scaling LLM Infrastructure Powered by Rancher

Description
The Problem
Running LLMs can get expensive and complex pretty quickly.
Today there are typically two choices:
- Use cloud APIs like OpenAI or Anthropic. Easy to start with, but costs add up at scale.
- Self-host everything - set up Kubernetes, figure out GPU scheduling, handle scaling, manage model serving... it's a lot of work.
What if there was a middle ground?
What if infrastructure scaled itself instead of making you scale it?
Can we use existing Rancher capabilities like CAPI, autoscaling, and GitOps to make this simpler instead of building everything from scratch?
Project Repository: github.com/alexander-demicev/llmserverless
What This Project Does
A key feature is hybrid deployment: requests can be routed based on complexity or privacy needs. Simple or low-sensitivity queries can use public APIs (like OpenAI), while complex or private requests are handled in-house on local infrastructure. This flexibility allows balancing cost, privacy, and performance - using cloud for routine tasks and on-premises resources for sensitive or demanding workloads.
A complete, self-scaling LLM infrastructure that:
- Scales to zero when idle (no idle costs)
- Scales up automatically when requests come in
- Adds more nodes when needed, removes them when demand drops
- Runs on any infrastructure - laptop, bare metal, or cloud
Think of it as "serverless for LLMs" - focus on building, the infrastructure handles itself.
How It Works
A combination of open source tools working together:
Flow:
- Users interact with OpenWebUI (chat interface)
- Requests go to LiteLLM Gateway
- LiteLLM routes requests to:
- Ollama (Knative) for local model inference (auto-scales pods)
- Or cloud APIs for fallback
- Cluster Autoscaler scales nodes up/down as needed
- Fleet keeps everything in sync via GitOps
Goals
- Provide a middle ground between cloud APIs and self-hosted LLMs
- Enable cost-efficient, privacy-preserving, and flexible LLM deployments
- Make LLM infrastructure easy to deploy and manage (Helm chart, GitOps)
- Support local development and production scaling
- Experiment with hybrid routing, serverless scaling, and GitOps automation
Resources
Features
- Packaged as a Helm chart: The entire stack is delivered as a Helm chart for easy deployment. See the project repository for setup instructions.
- Scale to Zero: No requests? No pods. No pods? No nodes (well, minimum 1). LLM infrastructure costs nothing when idle.
- Hybrid Routing: Simple requests can use public APIs, while complex or private queries are handled in-house, balancing cost and privacy.
- GitOps Native: Everything is Fleet bundles.
- Local Development Ready: Uses KIND + Docker provider for local dev. Same architecture that scales to production.
Tech Stack
- Rancher 2.13 - Cluster management (Turtles is now built-in!)
- Cluster API - Infrastructure as Kubernetes resources
- Knative Serving - Serverless pod autoscaling
- Ollama - Run LLMs locally
- LiteLLM - Unified LLM API gateway
- OpenWebUI - Chat interface
- Fleet - GitOps deployment
What's Next
This is a hackweek project, but here are ideas for the future:
- GPU node pools for production workloads
- Cloud provider templates (AWS/Azure/GCP)
- Smarter routing based on prompt complexity
- Cost tracking dashboard
- Response caching
Setup & Usage
For all setup and usage instructions, please refer to the project repository.
Why This Matters
LLMs are becoming a core part of many applications. But infrastructure options are still catching up.
This project explores a middle path:
- Privacy - run models locally, keep data in-house
- Cost efficiency - scale to zero, pay only for actual usage
- Flexibility - mix local and cloud models based on needs
- Simplicity - one command to deploy, GitOps to manage
It's an experiment in making LLM infrastructure more accessible and practical.
Updates
- Update 1: Pushed some project prototype I had before along with changes needed to run it on most recent Rancher version
- Update 2: Added multiple improvements for POC
Hackweek Results and Conclusion
Project Repository: github.com/alexander-demicev/llmserverless
The main conclusion is that it’s already possible to build something like this using the existing Rancher provisioning and management features. However, there are still a few questions and areas to improve for the future:
- The POC is based on Kubeadm, it can and should be migrated to RKE2.
- The SUSE AI stack wasn’t used for the sake of time efficiency, the goal was to assemble something that might currently be missing from it.
- Cluster Autoscaler is getting support in Rancher, so the POC should be updated to use the autoscaler setup recommended by Rancher.
- I’m not sure Knative is the best tool for self-scaling, maybe Keda would be a better alternative? I found Knative a bit complicated to configure and use, and it might be an overhead for the scope we have.
Looking for hackers with the skills:
This project is part of:
Hack Week 25
Activity
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m=models/gpt-oss-20b-mxfp4.gguf
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benchmark
I benchmarked inference with llama.cpp + gpt-oss-20b-mxfp4.gguf and ROCm offloading to a Radeon RX 9060 XT 16GB. I varied the number of layers that went to the GPU:
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Description
For purely studying purposes, I'd like to find out if I could teach an LLM some of my own accumulated knowledge, to use it as a sort of extended brain.
I might use qwen3-coder or something similar as a starting point.
Everything would be done 100% offline without network available to the container, since I prefer to see when network is needed, and make it so it's never needed (other than initial downloads).
Goals
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- Find out if everything works offline as intended.
- As an end result have a new way to access my own existing know-how, but so that I can query the wisdom in them.
- Be flexible to pivot in any direction, as long as there are new things learned.
Resources
To be found on the fly.
Timeline
Day 1 (of 4)
- Tried out a RAG demo, expanded on feeding it my own data
- Experimented with qwen3-coder to add a persistent chat functionality, and keeping vectors in a pickle file
- Optimizations to keep everything within context window
- Learn and add a bit of PyTest
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Description
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- Data Normalization: Convert complex, technical identifiers (like component URNs, raw metric names, and proprietary health states) into standardized, natural language terms that an LLM can easily reason over.
- Enabling Automated Remediation: Define clear, action-oriented MCP endpoints (e.g., execute_runbook) that allow the AI agent to initiate automated operational workflows (e.g., restarts, scaling) after a diagnosis, closing the loop on observability.
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Scope
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- A README.md and a test script (e.g., curl commands or a simple notebook) showing how an AI agent would call the endpoint and the resulting JSON payload.
Outcome A functional and testable API endpoint that proves the core concept: translating complex StackState data into a simple, LLM-ready format. This provides the foundation for developing AI-driven diagnostics and automated remediation.
Resources
- https://www.honeycomb.io/blog/its-the-end-of-observability-as-we-know-it-and-i-feel-fine
- https://www.datadoghq.com/blog/datadog-remote-mcp-server
- https://modelcontextprotocol.io/specification/2025-06-18/index
- https://modelcontextprotocol.io/docs/develop/build-server
Basic implementation
- https://github.com/drutigliano19/suse-observability-mcp-server
Results
Successfully developed and delivered a fully functional SUSE Observability MCP Server that bridges language models with SUSE Observability's operational data. This project demonstrates how AI agents can perform intelligent troubleshooting and root cause analysis using structured access to real-time infrastructure data.
Example execution
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Description
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Description
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And why this is good idea?
- User can use favorite command line tools to view and search the tickets from various sources
- User can use AI agents capabilities from your favorite IDE or cli to ask question about the issues, project or functionality while providing relevant tickets as context without extra work.
- User can use it during development of the new features when you let the AI agent to jump start the solution. The issuefs will give the AI agent the context (AI agents just read few more files) about the bug or requested features. No need for copying and pasting issues to user prompt or by using extra MCP tools to access the issues. These you can still do but this approach is on purpose different.

Goals
- Add Github issue support
- Proof the concept/approach by apply the approach on itself using Github issues for tracking and development of new features
- Add support for Bugzilla and Redmine using this approach in the process of doing it. Record a video of it.
- Clean-up and test the implementation and create some documentation
- Create a blog post about this approach
Resources
There is a prototype implementation here. This currently sort of works with JIRA only.
The Agentic Rancher Experiment: Do Androids Dream of Electric Cattle? by moio
Rancher is a beast of a codebase. Let's investigate if the new 2025 generation of GitHub Autonomous Coding Agents and Copilot Workspaces can actually tame it. 
The Plan
Create a sandbox GitHub Organization, clone in key Rancher repositories, and let the AI loose to see if it can handle real-world enterprise OSS maintenance - or if it just hallucinates new breeds of Kubernetes resources!
Specifically, throw "Agentic Coders" some typical tasks in a complex, long-lived open-source project, such as:
❥ The Grunt Work: generate missing GoDocs, unit tests, and refactorings. Rebase PRs.
❥ The Complex Stuff: fix actual (historical) bugs and feature requests to see if they can traverse the complexity without (too much) human hand-holding.
❥ Hunting Down Gaps: find areas lacking in docs, areas of improvement in code, dependency bumps, and so on.
If time allows, also experiment with Model Context Protocol (MCP) to give agents context on our specific build pipelines and CI/CD logs.
Why?
We know AI can write "Hello World." and also moderately complex programs from a green field. But can it rebase a 3-month-old PR with conflicts in rancher/rancher? I want to find the breaking point of current AI agents to determine if and how they can help us to reduce our technical debt, work faster and better. At the same time, find out about pitfalls and shortcomings.
The CONCLUSION!!!
A
State of the Union
document was compiled to summarize lessons learned this week. For more gory details, just read on the diary below!
A CLI for Harvester by mohamed.belgaied
Harvester does not officially come with a CLI tool, the user is supposed to interact with Harvester mostly through the UI. Though it is theoretically possible to use kubectl to interact with Harvester, the manipulation of Kubevirt YAML objects is absolutely not user friendly. Inspired by tools like multipass from Canonical to easily and rapidly create one of multiple VMs, I began the development of Harvester CLI. Currently, it works but Harvester CLI needs some love to be up-to-date with Harvester v1.0.2 and needs some bug fixes and improvements as well.
Project Description
Harvester CLI is a command line interface tool written in Go, designed to simplify interfacing with a Harvester cluster as a user. It is especially useful for testing purposes as you can easily and rapidly create VMs in Harvester by providing a simple command such as:
harvester vm create my-vm --count 5
to create 5 VMs named my-vm-01 to my-vm-05.
Harvester CLI is functional but needs a number of improvements: up-to-date functionality with Harvester v1.0.2 (some minor issues right now), modifying the default behaviour to create an opensuse VM instead of an ubuntu VM, solve some bugs, etc.
Github Repo for Harvester CLI: https://github.com/belgaied2/harvester-cli
Done in previous Hackweeks
- Create a Github actions pipeline to automatically integrate Harvester CLI to Homebrew repositories: DONE
- Automatically package Harvester CLI for OpenSUSE / Redhat RPMs or DEBs: DONE
Goal for this Hackweek
The goal for this Hackweek is to bring Harvester CLI up-to-speed with latest Harvester versions (v1.3.X and v1.4.X), and improve the code quality as well as implement some simple features and bug fixes.
Some nice additions might be: * Improve handling of namespaced objects * Add features, such as network management or Load Balancer creation ? * Add more unit tests and, why not, e2e tests * Improve CI * Improve the overall code quality * Test the program and create issues for it
Issue list is here: https://github.com/belgaied2/harvester-cli/issues
Resources
The project is written in Go, and using client-go the Kubernetes Go Client libraries to communicate with the Harvester API (which is Kubernetes in fact).
Welcome contributions are:
- Testing it and creating issues
- Documentation
- Go code improvement
What you might learn
Harvester CLI might be interesting to you if you want to learn more about:
- GitHub Actions
- Harvester as a SUSE Product
- Go programming language
- Kubernetes API
- Kubevirt API objects (Manipulating VMs and VM Configuration in Kubernetes using Kubevirt)
Rancher/k8s Trouble-Maker by tonyhansen
Project Description
When studying for my RHCSA, I found trouble-maker, which is a program that breaks a Linux OS and requires you to fix it. I want to create something similar for Rancher/k8s that can allow for troubleshooting an unknown environment.
Goals for Hackweek 25
- Update to modern Rancher and verify that existing tests still work
- Change testing logic to populate secrets instead of requiring a secondary script
- Add new tests
Goals for Hackweek 24 (Complete)
- Create a basic framework for creating Rancher/k8s cluster lab environments as needed for the Break/Fix
- Create at least 5 modules that can be applied to the cluster and require troubleshooting
Resources
- https://github.com/celidon/rancher-troublemaker
- https://github.com/rancher/terraform-provider-rancher2
- https://github.com/rancher/tf-rancher-up
- https://github.com/rancher/quickstart
OpenPlatform Self-Service Portal by tmuntan1
Description
In SUSE IT, we developed an internal developer platform for our engineers using SUSE technologies such as RKE2, SUSE Virtualization, and Rancher. While it works well for our existing users, the onboarding process could be better.
To improve our customer experience, I would like to build a self-service portal to make it easy for people to accomplish common actions. To get started, I would have the portal create Jira SD tickets for our customers to have better information in our tickets, but eventually I want to add automation to reduce our workload.
Goals
- Build a frontend website (Angular) that helps customers create Jira SD tickets.
- Build a backend (Rust with Axum) for the backend, which would do all the hard work for the frontend.
Resources (SUSE VPN only)
- development site: https://ui-dev.openplatform.suse.com/login?returnUrl=%2Fopenplatform%2Fforms
- https://gitlab.suse.de/itpe/core/open-platform/op-portal/backend
- https://gitlab.suse.de/itpe/core/open-platform/op-portal/frontend
Cluster API Provider for Harvester by rcase
Project Description
The Cluster API "infrastructure provider" for Harvester, also named CAPHV, makes it possible to use Harvester with Cluster API. This enables people and organisations to create Kubernetes clusters running on VMs created by Harvester using a declarative spec.
The project has been bootstrapped in HackWeek 23, and its code is available here.
Work done in HackWeek 2023
- Have a early working version of the provider available on Rancher Sandbox : *DONE *
- Demonstrated the created cluster can be imported using Rancher Turtles: DONE
- Stretch goal - demonstrate using the new provider with CAPRKE2: DONE and the templates are available on the repo
DONE in HackWeek 24:
- Add more Unit Tests
- Improve Status Conditions for some phases
- Add cloud provider config generation
- Testing with Harvester v1.3.2
- Template improvements
- Issues creation
DONE in 2025 (out of Hackweek)
- Support of ClusterClass
- Add to
clusterctlcommunity providers, you can add it directly withclusterctl - Testing on newer versions of Harvester v1.4.X and v1.5.X
- Support for
clusterctl generate cluster ... - Improve Status Conditions to reflect current state of Infrastructure
- Improve CI (some bugs for release creation)
Goals for HackWeek 2025
- FIRST and FOREMOST, any topic is important to you
- Add e2e testing
- Certify the provider for Rancher Turtles
- Add Machine pool labeling
- Add PCI-e passthrough capabilities.
- Other improvement suggestions are welcome!
Thanks to @isim and Dominic Giebert for their contributions!
Resources
Looking for help from anyone interested in Cluster API (CAPI) or who wants to learn more about Harvester.
This will be an infrastructure provider for Cluster API. Some background reading for the CAPI aspect:
