By Jeff Fan and Anish Singh Walia
This comprehensive tutorial guides you through the deployment of NVIDIA Dynamo for high-performance Large Language Model (LLM) inference on DigitalOcean GPU Droplets. As artificial intelligence advances, the demand for efficient and scalable LLM inference solutions has grown significantly. NVIDIA Dynamo, a state-of-the-art inference service framework, provides a robust set of tools to address these demands. This tutorial aims to assist developers and teams, regardless of their AI or cloud background, in rapidly deploying and validating NVIDIA Dynamo on DigitalOcean GPU Droplets for distributed LLM inference capabilities.
In this tutorial, we will focus on single-node deployment, providing a solid foundation for understanding the basics of NVIDIA Dynamo and its integration with DigitalOcean GPU Droplets. It’s essential to note that NVIDIA Dynamo also supports more advanced deployment scenarios, including multi-node configurations and Kubernetes integration, which will be explored in subsequent tutorials. This tutorial is designed to help developers and teams, regardless of their AI or cloud background, to quickly get started with deploying and validating NVIDIA Dynamo on DigitalOcean GPU Droplets for distributed LLM inference.
NVIDIA Dynamo is a cutting-edge, high-performance inference service framework specifically designed to accelerate and optimize large-scale generative AI and inference models. By leveraging DigitalOcean’s GPU Droplets, you can deploy Dynamo to unlock a range of benefits, including:
Distributed LLM Inference Services
Dynamo enables the deployment of distributed LLM inference services, allowing you to allocate prefill and decode stages to different GPUs. This disaggregated service architecture ensures maximum resource utilization, leading to improved performance and efficiency.
Intelligent Resource Scheduling
The framework incorporates intelligent resource scheduling capabilities, which dynamically allocate GPU resources based on workload demands. This is achieved through the integration of KV Cache, a key-value caching system that optimizes request routing and reduces latency. As a result, you can expect significant improvements in throughput and latency reduction.
High-Performance Validation
To validate the performance of your LLM inference services, Dynamo provides practical examples and testing tools. These resources enable you to observe and compare performance differences in parallel inference scenarios, ensuring that your deployment is optimized for high-performance and low-latency operations.
You can read more about NVIDIA Dynamo in the officla documentation on What is NVIDIA Dynamo?.
vLLM is a fast and easy-to-use library for LLM inference and serving, originally developed at UC Berkeley’s Sky Computing Lab. vLLM excels at:
However, vLLM alone has limitations in distributed scenarios and intelligent request routing, which is where NVIDIA Dynamo provides orchestration and scaling capabilities.
KV Cache (Key-Value Cache) is a crucial optimization technique that fundamentally transforms how Large Language Models process sequential text generation. At its core, KV Cache stores pre-computed key-value pairs from previous tokens in the attention mechanism, eliminating redundant calculations during text generation and dramatically improving inference performance.
The attention mechanism in transformers computes three key components for each token: Query (Q), Key (K), and Value (V). When generating text sequentially, the model processes each new token by attending to all previous tokens. Without caching, this requires recalculating K and V for every previous token at each step, leading to O(n²) computational complexity.
KV Cache solves this by storing the computed K and V tensors for each token position. When generating the next token, the model only needs to:
This reduces computational complexity from O(n²) to O(n), making it possible to handle much longer sequences efficiently.
While KV Cache provides substantial performance benefits, it comes with memory overhead. Each cached token requires storing K and V tensors, which can grow significantly for long sequences. For example, a model with 4096 hidden dimensions might require approximately 8MB of GPU memory per cached token. This trade-off is particularly important when:
NVIDIA Dynamo enhances KV Cache functionality through intelligent routing and distributed management:
For technical details, see the official KV caching guide.
Imagine walking into a Michelin-starred restaurant. It’s not just about having top-tier chefs (like vLLM, a high-performance inference engine), but also having a complete professional service system, ordering system, customized menu design, and even the ability to coordinate the optimal serving sequence and experience based on each customer’s taste preferences, allergies, and dining timing.
In the world of LLM inference, what does this mean?
Summary:
Dynamo is not meant to replace vLLM, but to incorporate efficient kitchens like vLLM into a smarter, more flexible operational system. This allows AI services to simultaneously handle more users, support larger models, and provide higher quality experiences.
NVIDIA Dynamo is the successor to Nvidia Triton for LLM workloads, bringing several innovations:
Foundation for Success: Choosing the right GPU specifications is critical for NVIDIA Dynamo’s performance. Unlike traditional CPU-based applications, LLM inference requires:
DeepSeek-R1-Distill-Llama-8B
require 8-16GB GPU memory for efficient inferenceCost Optimization: Selecting appropriate specifications prevents over-provisioning (wasting money) or under-provisioning (poor performance). The recommended 32GB+ system RAM ensures smooth container operations and model loading.
Scalability Foundation: Starting with the right base configuration makes future scaling decisions easier and more predictable.
This step establishes the entire software stack required for NVIDIA Dynamo deployment:
System Updates: Ensures security patches and compatibility with latest NVIDIA drivers
Essential Packages: python3-dev
, libucx0
, and other dependencies are required for Dynamo’s Rust and Python components
Docker with GPU Support: Critical for containerized deployment - without proper GPU passthrough, containers cannot access NVIDIA hardware
NVIDIA Container Toolkit: Bridges Docker and NVIDIA drivers, enabling --gpus
flag functionality
System Reboot: Ensures kernel modules and driver changes take effect properly
Why Reboot is Essential: The NVIDIA Container Toolkit modifies system-level configurations. Without reboot, you may encounter “device driver not found” errors or GPU access failures in containers.
DigitalOcean CLI Integration: doctl
enables seamless integration with DigitalOcean Container Registry (DOCR), essential for storing and deploying custom Dynamo images in production environments.
This 5-6 minute setup prevents hours of troubleshooting later and ensures a stable foundation for all subsequent steps.
SSH or Login in to your GPU Droplet and run the following commands to update your system and install essential packages:
sudo apt-get update && sudo apt-get upgrade -y
sudo apt-get install -y python3-dev python3-pip python3-venv libucx0 git ca-certificates curl snapd jq
# Install Docker
curl -fsSL https://get.docker.com | sh
sudo usermod -aG docker $USER
# Install NVIDIA Container Toolkit
distribution=$(. /etc/os-release;echo $ID$VERSION_ID)
curl -s -L https://nvidia.github.io/libnvidia-container/gpgkey | sudo apt-key add -
curl -s -L https://nvidia.github.io/libnvidia-container/$distribution/libnvidia-container.list | sudo tee /etc/apt/sources.list.d/nvidia-container-toolkit.list
sudo apt-get update && sudo apt-get install -y nvidia-docker2
sudo systemctl restart docker
# Reboot system to ensure all changes take effect
sudo reboot
After reboot, reconnect to your Droplet and verify GPU access:
# Test GPU access in containers
docker run --rm --gpus all nvidia/cuda:12.3.0-base-ubuntu22.04 nvidia-smi
# Install Docker Compose
sudo apt-get install docker-ce docker-ce-cli containerd.io docker-buildx-plugin docker-compose-plugin -y
# Install doctl for DOCR access
sudo snap install doctl
doctl auth init # Enter your DO API token
doctl registry login
Run the following commands to create a virtual environment and install NVIDIA Dynamo:
apt-get update
DEBIAN_FRONTEND=noninteractive apt-get install -yq python3-dev python3-pip python3-venv libucx0
python3 -m venv venv
source venv/bin/activate
pip install "ai-dynamo[all]"
Dependency Isolation: Python virtual environments prevent conflicts between different projects and system packages:
Why ai-dynamo[all]
: The [all]
extra installs optional dependencies including:
Production Best Practice: Virtual environments are essential for production deployments, making dependency management predictable and maintainable.
Run the following commands to download the source code and checkout the v0.3.0 tag:
git clone https://github.com/ai-dynamo/dynamo.git
cd dynamo
git fetch --tags
git checkout v0.3.0
Version Stability: Using the official source code and checking out a specific tag (v0.3.0) ensures:
Source Code Access: Having the full source code enables:
Git Tag Strategy: Using git fetch --tags
and git checkout v0.3.0
ensures you get the exact version tested with this tutorial, preventing version-related deployment issues.
Run the following commands to build the Dynamo base image and push it to your DigitalOcean Container Registry (DOCR):
./container/build.sh
# Wait 20-30 minutes
export DOCKER_REGISTRY=<your-registry>
docker tag dynamo:v0.3.0-vllm $DOCKER_REGISTRY/dynamo-base:v0.3.0-vllm
docker login $DOCKER_REGISTRY
docker push $DOCKER_REGISTRY/dynamo-base:v0.3.0-vllm
# Wait 20-30 minutes
Custom Image Benefits: Building your own Dynamo image provides several advantages:
DigitalOcean Container Registry (DOCR) Advantages:
Build Time Investment: The 20-30 minute build time includes:
Production Readiness: This step transforms the development code into a production-ready container that can be deployed consistently across environments.
Performance Optimization Tip: For optimal performance, consider setting up your DigitalOcean Container Registry in the NYC region (same as your GPU Droplet location). This reduces image transfer time significantly during deployment and updates.
Registry Setup Guide: If you haven’t set up DOCR yet, follow the comprehensive DigitalOcean Private Docker Registry Tutorial to create your registry in the NYC region.
Run the following commands to start the Dynamo distributed runtime services:
docker compose -f deploy/metrics/docker-compose.yml up -d
Infrastructure Services: The metrics Docker Compose stack provides essential infrastructure:
Distributed Architecture Foundation: These services enable:
Why Start Early: Starting these services before Dynamo ensures:
Run the following commands to enter the container and mount the workspace:
./container/run.sh -it --mount-workspace --image dynamo:v0.3.0-vllm
Development Environment Isolation: Working inside containers provides several benefits:
Workspace Mounting Benefits:
Why dynamo:v0.3.0-vllm
Image: This specific image includes:
Container vs Host Development: Container development ensures your local changes will work identically in production, eliminating “works on my machine” issues.
Run the following commands to build the Rust components:
# Build Rust components
cargo build --release
Wait 10-15 minutes for build completion
mkdir -p /workspace/deploy/dynamo/sdk/src/dynamo/sdk/cli/bin
cp /workspace/target/release/http /workspace/deploy/dynamo/sdk/src/dynamo/sdk/cli/bin
cp /workspace/target/release/llmctl /workspace/deploy/dynamo/sdk/src/dynamo/sdk/cli/bin
cp /workspace/target/release/dynamo-run /workspace/deploy/dynamo/sdk/src/dynamo/sdk/cli/bin
Now, we need to install the Python packages:
uv pip install -e .
export PYTHONPATH=$PYTHONPATH:/workspace/deploy/sdk/src:/workspace/components/planner/src
Rust Components Performance: Dynamo’s core components are written in Rust for maximum performance:
Critical Binaries Built:
http
: High-performance HTTP server for API endpointsllmctl
: Command-line tool for managing LLM servicesdynamo-run
: Main service orchestrator and runtimeBuild Time Investment: The 10-15 minute build time includes:
Python Environment Setup: Installing Dynamo in editable mode (-e .
) enables:
Why This Step is Critical: Without properly built Rust components, Dynamo cannot start or will have severely degraded performance.
Run the following commands to start the Dynamo test service:
cd examples/llm
dynamo serve graphs.agg_router:Frontend -f configs/agg_router.yaml
Service Validation: Starting the Dynamo service validates your entire deployment:
Aggregated Router Architecture: The agg_router
configuration demonstrates:
Model Download Process: The DeepSeek-R1-Distill-Llama-8B model:
Service Health Indicators: A successful start shows:
Note: If you are encountering HTTP error 429 (Too many requests) during model download, please wait five minutes and retry.
Use the following command to send a test request to the Dynamo service using curl
and jq
:
curl localhost:8000/v1/chat/completions \
-H "Content-Type: application/json" \
-d '{
"model": "deepseek-ai/DeepSeek-R1-Distill-Llama-8B",
"messages": [
{"role": "user", "content": "How to travel from Munich to Berlin?"}
],
"stream": false,
"max_tokens": 300
}' | jq
End-to-End Validation: This final test confirms your entire deployment works correctly:
Request Structure Analysis:
max_tokens
limits response length, stream: false
gets complete responsePerformance Indicators: A successful response demonstrates:
Production Readiness: This test confirms your deployment is ready for:
Troubleshooting Value: If this test fails, it helps identify issues in:
Congratulations! You’ve successfully deployed NVIDIA Dynamo and received your first LLM response. Your high-performance inference service is now running on DigitalOcean GPU Droplets.
8000
(or your configured API port) in Droplet firewallWhen deploying NVIDIA Dynamo to DigitalOcean GPU Droplets, you may encounter the following common issues to help you quickly locate and resolve problems.
Issue Type | Symptoms/Error Messages | Solution Suggestions |
---|---|---|
NVIDIA Driver/CUDA Issues | nvidia-smi cannot display GPU, or CUDA version mismatch |
Recommend using DigitalOcean default drivers, upgrade not recommended unless specifically needed. If upgrading, refer to official tutorials and restart Droplet. |
Docker/nvidia-docker Issues | docker: Error response from daemon: could not select device driver |
Confirm nvidia-docker2 is installed, test with docker run --gpus all nvidia/cuda:12.3.0-base-ubuntu22.04 nvidia-smi . |
Dynamo Installation/Startup Errors | ModuleNotFoundError , ImportError , dynamo: command not found |
Confirm ai-dynamo[all] is installed in venv, and checked out to v0.3.0 tag. |
API Connection/Port Issues | curl no response, Connection refused , port errors |
Confirm port when Dynamo starts (e.g., 8000), firewall is open, and test command port matches. |
GPU Resource Insufficient/Cannot Allocate | CUDA out of memory , No GPU found |
Check Droplet GPU specifications, gpu parameter in config.yaml should not exceed physical GPU count. |
Version/Dependency Incompatibility | No matching distribution found for ai-dynamo-runtime==X.X.X |
Recommend checkout v0.3.0 tag, ensure pip/venv is clean. |
The minimum requirements include:
To scale Dynamo for multiple requests:
max_concurrent_requests
in config.yamlCommon solutions include:
nvidia-smi
max_batch_size
in config.yamlgpu
parameter matches available GPUsPerformance monitoring strategies:
/metrics
endpoint for real-time statisticsnvidia-smi -l 1
Yes, with considerations:
gpu_memory_fraction
per instanceEssential backup strategies include:
config.yaml
and startup scriptsYou have learned how to deploy and validate NVIDIA Dynamo on DigitalOcean GPU Droplets, completing the full process of high-performance LLM inference services. This will help you quickly build scalable AI applications, and you can expand to multi-node, frontend integration, and other advanced applications as needed.
Now that you have successfully deployed NVIDIA Dynamo on a single GPU Droplet, the next essential step is to understand and optimize its performance:
In our next tutorial, you’ll learn how to build a comprehensive monitoring dashboard and conduct systematic performance testing to optimize your NVIDIA Dynamo deployment. This includes understanding key metrics, identifying bottlenecks, and making data-driven scaling decisions.
Stay tuned for the upcoming guide on Building Performance Monitoring Dashboards for NVIDIA Dynamo!
Happy deploying and efficient inference!
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I’m a Senior Solutions Architect in Munich with a background in DevOps, Cloud, Kubernetes and GenAI. I help bridge the gap for those new to the cloud and build lasting relationships. Curious about cloud or SaaS? Let’s connect over a virtual coffee! ☕
Helping Businesses stand out with AI, SEO, & Technical content that drives Impact & Growth | Senior Technical Writer @ DigitalOcean | 2x Medium Top Writers | 2 Million+ monthly views & 34K Subscribers | Ex Cloud Engineer @ AMEX | Ex SRE(DevOps) @ NUTANIX
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