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How to Set Up Azure OpenAI

Azure OpenAI gives you access to OpenAI models hosted in your own Azure tenant. This guide covers both authentication methods.

  • An Azure subscription with Azure OpenAI Service enabled
  • A deployed model (e.g., GPT-4o, GPT-4 Turbo) in your Azure OpenAI resource
  • The endpoint URL and deployment name from the Azure portal
  1. Open Settings > Azure OpenAI in Daneel.
  2. Enter your Endpoint URL (e.g., https://your-resource.openai.azure.com/).
  3. Enter your Deployment name (the name you gave your model deployment).
  4. Select API Key as the auth method.
  5. Paste your Azure API key.
  6. Click Save.

Switch the provider dropdown in the chat panel to Azure OpenAI to start using it.

For environments that require Azure Active Directory authentication:

  1. Open Settings > Azure OpenAI in Daneel.
  2. Enter your Endpoint URL and Deployment name.
  3. Select Entra ID as the auth method.
  4. Daneel initiates an OAuth2 flow via Chrome’s identity API.
  5. Sign in with your Microsoft account and consent to the required permissions.

Daneel handles token refresh automatically.

Azure OpenAI supports MCP tool calling using the OpenAI function calling format. Once configured, connected MCP servers work the same as with Claude or Ollama.