In the rapidly evolving field of technology, large language models (LLMs) are increasingly powering diverse applications, necessitating robust observability to ensure their reliable performance. OpenTelemetry, in conjunction with Grafana Cloud and the open-source tool OpenLIT, plays a crucial role in monitoring these applications by collecting and exporting monitoring data in a standardized, vendor-neutral manner. Observability is crucial for tracking request frequency, response times, rate-limiting issues, response quality, and operational costs, all of which help in optimizing performance and managing expenses. Unlike traditional API monitoring, LLM observability offers a deeper insight into application performance by capturing detailed information such as prompts, responses, associated costs, and token usage. OpenLIT simplifies the process of automatic instrumentation, enabling developers to capture essential telemetry data, which can be visualized through Grafana Cloud dashboards for enhanced understanding and management of the applications' performance and behavior. This comprehensive approach to monitoring supports effective debugging, cost management, and resource optimization, ultimately leading to more efficient application performance.