The world of artificial intelligence is moving incredibly fast, and building intelligent applications is no longer just for big tech companies. Thanks to powerful tools and services like the Vercel AI SDK and Nvidia NIM, you can create a fully functional, real-time AI chatbot with Next.js in no time.
This guide will provide you with insights into the process from setting up your project to deploying your chatbot. We'll use the latest Next.js features, including the React Server Components and App Router, to make sure your application is secure and fast. The best part? Your API key for the large language model(LLM) will remain safely on the server, a critical step for any professional-grade application.

The first step to building our Next.js AI chatbot is to lay the foundation. We'll start by creating a new Next.js application and installing the necessary packages.
To begin, open your terminal and run the following command:
Bash
npx create-next-app@latest
When prompted, select "yes" to use the Tailwind CSS and App Router. The App Router is a game-changer for developing modern Next.js applications, providing powerful features like nested layouts and server components. Tailwind CSS, on the other hand, will make styling our chatbot a breeze.
Once your project is set up, navigate into the new directory and install the Vercel AI SDK. This package will handle the complex logic of streaming AI responses for us. We’ll also install Tailwind CSS if you didn't already enable it during the initial setup.
Bash
npm install ai tailwindcss
Now, you need an API key to access an AI model. For this project, we'll use Nvidia's NIM service, which provides access to a huge range of powerful models. Head over to the Nvidia developer site, sign up, and get your API key.
To keep this key secure, we’ll store it in an environment file. Create a new file called .env.local in the root of your project and add your key like this:
NVIDIA_NIM_API_KEY=YOUR_NVIDIA_API_KEY
This file will not be committed to your Git repository, so your key will remain private. If you're looking to scale a project like this or need to manage more complex infrastructure, you might want to hire Next.js developers who specialize in secure and scalable application architecture.