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feat(aicore): transparent TLS mode and reactive credential reload - #256

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feat(aicore): transparent TLS mode and reactive credential reload#256
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feat/aicore-transparent-tls

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@tiagoek

@tiagoek tiagoek commented Aug 4, 2026

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Disclaimer: Do not include SAP-internal or customer-specific information in this PR (e.g. internal system URLs, customer names, tenant IDs, or confidential configurations). This is a public repository.

Description

This PR addresses two security concerns with how the aicore module handles credentials at runtime.

Tracking: AFSDK-4412 (transparent TLS) / HASI2026203 (CVE 9.9)


1. Reactive credential reload on AuthenticationError ✅ complete

completion() and acompletion() now intercept litellm.AuthenticationError, re-read credentials from the mounted secret volume via reload_aicore_credentials(), and retry the call once. This covers credential rotation scenarios (client secret rotation by the platform) without requiring a pod restart. If the retry also fails, the error propagates normally — no retry loop.

reload_aicore_credentials() is exported as a public function for callers that need to trigger a manual reload.

This feature is independently complete and works today with no additional changes.


2. Transparent TLS mode (AICORE_TRANSPARENT_TLS) ⚠️ SDK complete — pending LiteLLM upstream

Adds opt-in support for infrastructure-managed mTLS authentication. The mechanism:

  1. The deployer sets AICORE_TRANSPARENT_TLS=true in the pod environment
  2. set_aicore_config() skips writing AICORE_CLIENT_SECRET to os.environ and actively removes any stale value already present
  3. The Kyma infrastructure sidecar intercepts the outbound XSUAA token request and adds the mTLS client certificate at the TLS layer — the agent process never holds a shared secret

Important: This is a sidecar-based mechanism. It does not require an X.509 service binding (credential-type: x509) and does not require LiteLLM to use certificate material directly. The agent calls XSUAA with only client_id; the sidecar adds the mTLS cert transparently.

This is the same authentication pattern already used by the agentgateway module (introduced in #220).

LiteLLM upstream dependency: The current public litellm validate_credentials() requires exactly one credential mode (client_secret, cert_str+key_str, or cert_file_path+key_file_path). A 4th mode (transparent_tls=True) is needed to allow a no-credential token request where the sidecar provides the cert. Until that upstream change lands and litellm minimum version is bumped in pyproject.toml, AICORE_TRANSPARENT_TLS=true will result in a ValueError from LiteLLM on the first completion call.

Alternative today: Use proxy mode or destination mode from PR #271, which do not require the LiteLLM upstream change and address CVE 9.9 for the majority of agent deployments.

Any stale AICORE_CLIENT_SECRET already present in the environment is explicitly removed when transparent TLS mode is active, preventing accidental reuse.


Related Issues

Type of Change

  • New feature (non-breaking change that adds functionality)
  • Bug fix (non-breaking change that fixes an issue)
  • Breaking change (fix or feature that would cause existing functionality to change)
  • Documentation update
  • Code refactoring
  • Dependency update

How to Test

Reactive credential reload (works today):

  1. Call set_aicore_config() followed by completion() successfully
  2. Simulate credential rotation: update the mounted secret file with new credentials
  3. Force an AuthenticationError (e.g. revoke the current token or wait for expiry)
  4. Verify the next completion() call succeeds without a pod restart

Transparent TLS mode (SDK side only — LiteLLM upstream pending):

  1. Set AICORE_TRANSPARENT_TLS=true in the environment before calling set_aicore_config()
  2. Verify AICORE_CLIENT_SECRET is not present in os.environ after the call
  3. Verify AICORE_CLIENT_ID, AICORE_AUTH_URL, AICORE_BASE_URL are still set normally
  4. Full end-to-end test requires the LiteLLM upstream change — until that PR lands, litellm.completion() will still raise ValueError in transparent TLS mode

Unit tests:

python -m pytest tests/aicore/unit/ -v
# Expected: 65 passed

Checklist

  • I have read the Contributing Guidelines
  • I have verified that my changes solve the issue
  • I have added/updated automated tests to cover my changes
  • All tests pass locally
  • I have verified that my code follows the Code Guidelines
  • I have updated documentation (if applicable)
  • I have added type hints for all public APIs
  • My code does not contain sensitive information (credentials, tokens, etc.)
  • I have followed Conventional Commits for commit messages

Breaking Changes

None. All changes are additive or opt-in:

  • AICORE_TRANSPARENT_TLS — requires explicit opt-in; default behavior is unchanged
  • reload_aicore_credentials() — new public function, no existing callers affected
  • Retry on AuthenticationError — same exception type propagates if retry also fails; callers that catch AuthenticationError may observe a slight delay before receiving it (one additional attempt), but the contract is unchanged

Additional Notes

Dependency on LiteLLM upstream: validate_credentials() in litellm/llms/sap/credentials.py needs a 4th bypass mode for transparent TLS. The code change is minimal — add an optional transparent_tls: bool = False parameter that skips the credential requirement check when the sidecar handles authentication. A separate PR to BerriAI/litellm will be submitted for this.

Stacked PRs:

Introduces two security improvements for AI Core credential handling:

1. Transparent TLS mode (AICORE_TRANSPARENT_TLS=true): when active,
   set_aicore_config() skips writing AICORE_CLIENT_SECRET to os.environ
   and removes any stale value. The infrastructure sidecar proxy adds
   the mTLS certificate transparently on the SDK's behalf — no secret
   material needed in the agent process. Addresses HASI2026203 /
   SEC-309 (credentials exposed as env vars with excessive scope).

2. Reactive credential reload on AuthenticationError: completion() and
   acompletion() now intercept litellm.AuthenticationError, re-read
   credentials from the mounted secret volume, and retry once. Covers
   client_secret rotation and mTLS certificate rotation (cert-manager
   updates the volume file; the next failed token refresh triggers the
   reload) without requiring a pod restart.

Relates-to: AFSDK-4306
logger = logging.getLogger(__name__)


def reload_aicore_credentials() -> None:

@NicoleMGomes NicoleMGomes Aug 4, 2026

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Why are we creating a new method that only calls other?

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reload_aicore_credentials() serves two purposes: it's called automatically by completion()/acompletion() on AuthenticationError (reactive reload on credential rotation), and it's also exposed as a public API for callers that need to trigger a manual reload. Keeping it as a named function makes the automatic behavior explicit and gives callers a stable surface without coupling them to set_aicore_config() internals.

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I still disagree in having an new function just to wrapper with a new nomenclature. If in future you believe more will be needed, it's ok.

# When set, the infrastructure sidecar adds the mTLS certificate transparently.
# The SDK calls the XSUAA token endpoint over plain HTTPS with only client_id.
# No client_secret or certificate material is required in the service binding.
TRANSPARENT_TLS_ENV_VAR = "AICORE_TRANSPARENT_TLS"

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Can we understand if we can have a single variable to set transparent proxy usage and not specific by module?

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This probably could be related to secrets resolver refactor.

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