diff --git a/packages/sdk/server-ai/src/LDAIClientImpl.ts b/packages/sdk/server-ai/src/LDAIClientImpl.ts
index c116e460fb..4a4c5e0d23 100644
--- a/packages/sdk/server-ai/src/LDAIClientImpl.ts
+++ b/packages/sdk/server-ai/src/LDAIClientImpl.ts
@@ -3,7 +3,7 @@ import * as Mustache from 'mustache';
 import { LDContext, LDLogger } from '@launchdarkly/js-server-sdk-common';
 
 import { LDAIAgent, LDAIAgentConfig, LDAIAgentDefaults } from './api/agents';
-import { SupportedAIProvider, TrackedChat, TrackedChatFactory } from './api/chat';
+import { TrackedChat } from './api/chat';
 import {
   LDAIConfig,
   LDAIConfigTracker,
@@ -16,6 +16,7 @@ import {
   VercelAISDKProvider,
 } from './api/config';
 import { LDAIClient } from './api/LDAIClient';
+import { AIProviderFactory, SupportedAIProvider } from './api/providers';
 import { LDAIConfigMapper } from './LDAIConfigMapper';
 import { LDAIConfigTrackerImpl } from './LDAIConfigTrackerImpl';
 import { LDClientMin } from './LDClientMin';
@@ -246,7 +247,13 @@ export class LDAIClientImpl implements LDAIClient {
       return undefined;
     }
 
-    // Create the TrackedChat instance based on the provider
-    return TrackedChatFactory.create(aiConfig, aiConfig.tracker, this._logger, defaultAiProvider);
+    // Create the AIProvider instance
+    const provider = await AIProviderFactory.create(aiConfig, this._logger, defaultAiProvider);
+    if (!provider) {
+      return undefined;
+    }
+
+    // Create the TrackedChat instance with the provider
+    return new TrackedChat(aiConfig, aiConfig.tracker, provider);
   }
 }
diff --git a/packages/sdk/server-ai/src/api/LDAIClient.ts b/packages/sdk/server-ai/src/api/LDAIClient.ts
index d11801fcb1..3f98474a62 100644
--- a/packages/sdk/server-ai/src/api/LDAIClient.ts
+++ b/packages/sdk/server-ai/src/api/LDAIClient.ts
@@ -1,8 +1,9 @@
 import { LDContext } from '@launchdarkly/js-server-sdk-common';
 
 import { LDAIAgent, LDAIAgentConfig, LDAIAgentDefaults } from './agents';
-import { SupportedAIProvider, TrackedChat } from './chat';
+import { TrackedChat } from './chat';
 import { LDAIConfig, LDAIDefaults } from './config/LDAIConfig';
+import { SupportedAIProvider } from './providers';
 
 /**
  * Interface for performing AI operations using LaunchDarkly.
diff --git a/packages/sdk/server-ai/src/api/chat/index.ts b/packages/sdk/server-ai/src/api/chat/index.ts
index c95ec22e3c..f7876298ea 100644
--- a/packages/sdk/server-ai/src/api/chat/index.ts
+++ b/packages/sdk/server-ai/src/api/chat/index.ts
@@ -1,3 +1,2 @@
 export * from './types';
 export * from './TrackedChat';
-export * from './TrackedChatFactory';
diff --git a/packages/sdk/server-ai/src/api/chat/TrackedChatFactory.ts b/packages/sdk/server-ai/src/api/providers/AIProviderFactory.ts
similarity index 81%
rename from packages/sdk/server-ai/src/api/chat/TrackedChatFactory.ts
rename to packages/sdk/server-ai/src/api/providers/AIProviderFactory.ts
index 4017a96417..ab3546a35e 100644
--- a/packages/sdk/server-ai/src/api/chat/TrackedChatFactory.ts
+++ b/packages/sdk/server-ai/src/api/providers/AIProviderFactory.ts
@@ -1,9 +1,7 @@
 import { LDLogger } from '@launchdarkly/js-server-sdk-common';
 
 import { LDAIConfig } from '../config/LDAIConfig';
-import { LDAIConfigTracker } from '../config/LDAIConfigTracker';
-import { AIProvider } from '../providers/AIProvider';
-import { TrackedChat } from './TrackedChat';
+import { AIProvider } from './AIProvider';
 
 /**
  * List of supported AI providers.
@@ -21,41 +19,19 @@ export const SUPPORTED_AI_PROVIDERS = [
 export type SupportedAIProvider = (typeof SUPPORTED_AI_PROVIDERS)[number];
 
 /**
- * Factory for creating TrackedChat instances based on the provider configuration.
+ * Factory for creating AIProvider instances based on the provider configuration.
  */
-export class TrackedChatFactory {
+export class AIProviderFactory {
   /**
-   * Create a TrackedChat instance based on the AI configuration.
+   * Create an AIProvider instance based on the AI configuration.
    * This method attempts to load provider-specific implementations dynamically.
    * Returns undefined if the provider is not supported.
    *
    * @param aiConfig The AI configuration
-   * @param tracker The tracker for AI operations
    * @param logger Optional logger for logging provider initialization
    * @param defaultAiProvider Optional default AI provider to use
    */
   static async create(
-    aiConfig: LDAIConfig,
-    tracker: LDAIConfigTracker,
-    logger?: LDLogger,
-    defaultAiProvider?: SupportedAIProvider,
-  ): Promise<TrackedChat | undefined> {
-    const provider = await this._createAIProvider(aiConfig, logger, defaultAiProvider);
-    if (!provider) {
-      logger?.warn(
-        `Provider is not supported or failed to initialize: ${aiConfig.provider?.name ?? 'unknown'}`,
-      );
-      return undefined;
-    }
-
-    return new TrackedChat(aiConfig, tracker, provider);
-  }
-
-  /**
-   * Create an AIProvider instance based on the AI configuration.
-   * This method attempts to load provider-specific implementations dynamically.
-   */
-  private static async _createAIProvider(
     aiConfig: LDAIConfig,
     logger?: LDLogger,
     defaultAiProvider?: SupportedAIProvider,
@@ -74,6 +50,10 @@ export class TrackedChatFactory {
       }
     }
 
+    // If no provider was successfully created, log a warning
+    logger?.warn(
+      `Provider is not supported or failed to initialize: ${aiConfig.provider?.name ?? 'unknown'}`,
+    );
     return undefined;
   }
 
diff --git a/packages/sdk/server-ai/src/api/providers/index.ts b/packages/sdk/server-ai/src/api/providers/index.ts
index 3b4d3f90a4..5439dfa830 100644
--- a/packages/sdk/server-ai/src/api/providers/index.ts
+++ b/packages/sdk/server-ai/src/api/providers/index.ts
@@ -1 +1,2 @@
 export * from './AIProvider';
+export * from './AIProviderFactory';