In this article, I will walk you through the exact process of creating an Azure AI Foundry resource. I will focus on the architectural reality of setting this up correctly the first time.
Create Azure AI Foundry Resource
Understanding the Architecture: Hubs vs. Projects
Before we click a single button in the Azure Portal, you need to understand what you are actually creating. The “Foundry resource” typically refers to the Azure AI Hub.
Think of the Hub as your corporate headquarters. It holds the security policies, network connections, and compute quota. Inside that headquarters, you have individual teams working on specific tasks—these are your Projects.
Here is how I explain the hierarchy to stakeholders:
| Component | Analogy | Function |
| Azure AI Hub | The Office Building | Centralized security, identity management, networking, and resource connections (like OpenAI). |
| Azure AI Project | A Department (e.g., HR, Dev) | A workspace for developers to build apps, manage prompts, and run evaluations. |
| Connections | The Utility Lines | Links to external resources like Azure OpenAI, Azure AI Search, or Blob Storage. |
When you “create a Foundry resource,” you are building the Office Building (The Hub).
Prerequisites
To follow along with this tutorial, ensure your Azure environment is prepped.
- Azure Subscription: You need an active subscription. If you are a student or testing, the free tier might suffice, but for enterprise features, Pay-As-You-Go is standard.
- Access Control (RBAC): You must have
ContributororOwnerpermissions on the Resource Group. - Resource Group: A clean Resource Group is preferred to keep your AI assets isolated from production web apps.
Creating Your Azure AI Hub
Let’s get into the console. I will guide you through the Azure Portal interface, as it provides more granular control over the initial setup than the simplified Foundry portal.
Log in to your Azure Portal. In the top search bar, type “Azure AI Foundry” . You will likely see an option for “Azure OpenAI “ under services. Click on Azure OpenAI as shown in the screenshot below.
Initiate the Create Wizard
Click the + Create button dropdown and choose the Foundry (Recommended) option. You will be greeted with a setup wizard as shown in the screenshot below.
Configure Basic Details
This tab is the foundation. Here is how I configure it:
- Subscription: Select your primary development subscription.
- Resource Group: I usually use a proper name. It is a good practice to include the region in the name.
- Name: Give your Hub a globally unique name.
- Region: This is critical. Select East US 2 or West US.
Configure Dependent Resources
An AI Hub does not exist in a vacuum; it leans on other Azure services. The wizard will attempt to create new versions of these, but in an enterprise setting, you might want to link existing ones.
- Storage Account: Stores your raw data and artifacts. Standard LRS (Locally Redundant Storage) is usually fine for dev; use GRS (Geo-Redundant Storage) for prod.
- Key Vault: Stores your secrets and API keys.
- Application Insights: Critical for monitoring. Do not skip this.
- Container Registry: Required if you plan on using Prompt Flow with custom environments.