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Openai·Software Engineer·Take-home Assignment·Intermediate

Intermediate
Jun 2026

Summary

Take-home style system design task for an SWE role at OpenAI, basically build a mini ChatGPT clone with auth and streaming. The deep dive questions afterward are where it gets interesting, lots of 'why did you pick that' energy.

Questions Asked (5)

Q1

Why did you choose Server-Sent Events over WebSockets (or vice versa) to implement streaming AI responses?

Technical Trade-offsSystem DesignAPI & Integrations
Author's notes

This is the one I actually had a real opinion on.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the specific requirements of the streaming AI response use case, then compare SSE and WebSockets against those requirements, and finally justify your choice with concrete trade-offs. Emphasize that the decision is context-dependent and show awareness of both technologies' strengths and limitations.

Pro tip: Mention that SSE is often preferred for unidirectional server-to-client streaming because it's simpler, works over HTTP/2, and has built-in reconnection, but acknowledge that WebSockets are better for bidirectional or low-latency interactive applications. Also, note that OpenAI's own API uses SSE for streaming completions, which is a strong signal for this specific context.

1. Clarify the use case

Describe the streaming AI response scenario: typically unidirectional (server to client), text-based, and may need to handle long-lived connections. Highlight that the client sends a request and then receives a stream of tokens.

2. Compare SSE and WebSockets

List key differences: SSE is unidirectional, uses HTTP, supports automatic reconnection, and is text-only; WebSockets are bidirectional, require a separate protocol, and have lower overhead for frequent messages. Mention that SSE works well with existing HTTP infrastructure (proxies, load balancers) and is simpler to implement.

3. Evaluate trade-offs for the AI streaming context

Discuss why SSE might be chosen: simplicity, compatibility with HTTP/2 multiplexing, built-in reconnection, and sufficient for unidirectional token streaming. Note that WebSockets would be overkill unless bidirectional communication (e.g., user interrupts) is needed.

4. Justify your choice with concrete reasons

State your decision clearly and back it with specific reasons: e.g., 'We chose SSE because it reduced implementation complexity, leveraged existing HTTP/2 support, and provided automatic reconnection, which is crucial for long-running AI responses.'

5. Acknowledge alternatives and edge cases

Show awareness that WebSockets might be better for other scenarios, such as real-time collaborative editing or when the client needs to send frequent updates. Mention that some systems use a hybrid approach or fallback mechanisms.

Key Points to Mention

  • SSE is unidirectional (server to client) while WebSockets are bidirectional, which matters for AI streaming where only server-to-client is needed.
  • SSE operates over standard HTTP/HTTPS, simplifying integration with existing infrastructure like proxies, load balancers, and CDNs.
  • SSE has built-in reconnection and event ID tracking, which helps with reliability in long-lived streams.
  • WebSockets have lower latency and overhead for high-frequency bidirectional communication, but that's often unnecessary for AI token streaming.
  • HTTP/2 multiplexing allows multiple SSE streams over a single connection, improving efficiency.
  • OpenAI's own API uses SSE for streaming completions, indicating it's a proven choice for this use case.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q2

How would you integrate with a Chat Completion API and handle the streaming response correctly on the frontend?

API & IntegrationsSystem Design
Author's notes

Walked through reading the stream chunk by chunk and appending to state.

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AI HintsAI Generated

Suggested Approach

Start by outlining the end-to-end flow: backend securely calls the Chat Completion API with streaming enabled, then forwards chunks to the frontend via SSE or WebSockets. Emphasize correct handling of streamed deltas, error propagation, and UI updates for a smooth user experience.

Pro tip: Mention that you never expose API keys on the frontend and always use a backend proxy to handle authentication and rate limiting. Also highlight the importance of handling partial JSON chunks and network interruptions gracefully.

1. Set up secure backend proxy

Create a backend endpoint that authenticates with the Chat Completion API using a secret key, initiates a streaming request, and relays chunks to the client via SSE or WebSocket.

2. Choose a streaming transport

Select SSE for unidirectional server-to-client streaming or WebSockets for bidirectional communication, considering factors like scalability, browser support, and ease of use.

3. Parse and handle streamed chunks

On the frontend, use EventSource or WebSocket listeners to receive chunks, parse the delta content, and append it to the UI in real-time while handling partial data and errors.

4. Manage UI state and errors

Update the UI incrementally, show loading indicators, and implement retry logic or fallbacks for network failures or API errors to ensure a robust user experience.

5. Optimize and test

Consider performance optimizations like throttling UI updates, and test the streaming flow under various network conditions to ensure reliability.

Key Points to Mention

  • Use of Server-Sent Events (SSE) or WebSockets for streaming
  • Backend proxy to protect API keys and handle authentication
  • Parsing streamed deltas and updating UI incrementally
  • Error handling and reconnection strategies
  • Performance considerations like throttling and buffering
  • Security best practices (e.g., never expose API keys on frontend)

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q3

How do you manage user credentials securely without a backend database?

Technical Trade-offsSystem Design
Author's notes

Awkward question because the constraint is kind of artificial.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the constraints: no backend database means credentials must be stored client-side or in a decentralized manner, but security is paramount. Discuss secure storage options like OS keychains, encrypted local storage, or hardware-backed keystores, and emphasize the trade-offs between security, usability, and scalability. Highlight the importance of never storing plaintext passwords and using strong hashing with salts.

Pro tip: Mention that even without a backend, you can leverage OAuth or third-party identity providers to offload credential management, but be prepared to discuss the trade-offs of relying on external services. Also, emphasize that client-side storage is vulnerable to XSS and physical access, so encryption and secure enclaves are critical.

1. Clarify Requirements and Constraints

Ask about the platform (web, mobile, desktop), threat model, and whether any backend services (like authentication APIs) are allowed. This shows you understand the problem space before jumping to solutions.

2. Evaluate Secure Storage Options

Discuss options like OS keychains (iOS Keychain, Android Keystore), browser credential management APIs, encrypted local storage with strong encryption (e.g., AES-256), and hardware security modules. Compare their security properties and limitations.

3. Address Credential Verification Without a Database

Explain how to verify credentials without a central store: use cryptographic techniques like password hashing (bcrypt, Argon2) with per-user salts stored locally, or leverage decentralized identifiers (DIDs) and verifiable credentials.

4. Mitigate Risks and Trade-offs

Acknowledge risks: client-side storage is susceptible to XSS, physical theft, and reverse engineering. Propose mitigations: encryption at rest, secure enclaves, biometric authentication, and rate limiting. Discuss trade-offs between security, usability, and scalability.

5. Consider Alternatives and Hybrid Approaches

Mention alternatives like using third-party identity providers (OAuth, OpenID Connect) or a serverless backend (e.g., Firebase Auth) that abstracts credential storage. Highlight that 'no backend database' doesn't mean 'no backend at all'—you can use managed auth services.

Key Points to Mention

  • Never store plaintext passwords; always use strong hashing with salts (e.g., bcrypt, Argon2).
  • Leverage platform-specific secure storage: iOS Keychain, Android Keystore, Windows Credential Manager.
  • Encrypt sensitive data at rest using AES-256 and consider hardware-backed keystores for key management.
  • Use OAuth/OpenID Connect with third-party providers to avoid managing credentials directly.
  • Implement additional security layers: biometric authentication, multi-factor authentication, and secure enclaves.
  • Acknowledge trade-offs: client-side storage is vulnerable to XSS and physical access; scalability and sync across devices are challenging without a backend.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q4

How do you manage chat state entirely in the browser, and what are the tradeoffs of that approach?

System DesignTechnical Trade-offs
Author's notes

Pretty straightforward.

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AI HintsAI Generated

Suggested Approach

Start by defining the scope of 'entirely in the browser'—client-side state management without a backend—then outline the architecture using browser storage APIs and in-memory state. Discuss tradeoffs like persistence, scalability, security, and offline capabilities, and conclude with when this approach is appropriate versus server-side state.

Pro tip: Acknowledge that OpenAI's chat products often require server-side state for model context and safety, so emphasize that browser-only state is best for ephemeral or privacy-sensitive demos, not production-scale chat.

1. Clarify scope and requirements

Define what 'chat state' includes (messages, user info, settings) and the constraints (no backend, single-user, offline). This sets the stage for a focused answer.

2. Describe browser storage mechanisms

Explain how to use localStorage, sessionStorage, IndexedDB, and in-memory state (e.g., React state) to persist and manage chat data entirely client-side.

3. Outline state management architecture

Detail how to structure state (e.g., using Redux, Zustand, or Context) and sync it with storage, handling actions like sending messages and clearing history.

4. Analyze tradeoffs

Discuss pros (privacy, offline access, low latency) and cons (storage limits, no cross-device sync, security risks, data loss on clear).

5. Conclude with appropriate use cases

Summarize when this approach is suitable (prototypes, personal tools) and when it's not (multi-user, large history, compliance needs).

Key Points to Mention

  • Storage options: localStorage (5-10MB), IndexedDB (large, structured), sessionStorage (ephemeral)
  • State management libraries: Redux, Zustand, or React Context for predictable state updates
  • Security concerns: XSS attacks can steal data; avoid storing sensitive info
  • Scalability limits: browser storage quotas, performance with large histories
  • Lack of synchronization: no cross-device or multi-user support without a backend
  • Offline capability: works without network, but model inference may still require server

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q5

What does your error handling strategy look like if the network drops or the API fails mid-stream?

System DesignAdaptability & Ambiguity
Author's notes

I gave a decent answer about catching stream errors and showing a retry UI, but I totally forgot to mention exponential backoff until the interviewer nudged me.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the context—what kind of stream, what failure modes, and what guarantees are needed. Then outline a layered strategy: prevention (timeouts, retries with backoff), detection (heartbeats, error events), recovery (resume from last token/checkpoint, fallback to non-streaming), and user experience (graceful degradation, clear errors). Emphasize idempotency, observability, and testing.

Pro tip: Show you think about partial failures: streams can fail mid-response, so design for resumability and idempotent operations. Also, mention that you'd log enough context to debug but avoid logging sensitive data.

1. Clarify requirements and constraints

Ask about the stream type (e.g., SSE, WebSocket), expected failure modes, and guarantees (at-least-once, exactly-once). This shows you don't assume and tailor the solution.

2. Design for prevention and detection

Implement timeouts, heartbeats, and circuit breakers to detect failures early. Use exponential backoff with jitter for retries to avoid thundering herd.

3. Plan recovery and resumption

Support resuming from the last received token or checkpoint using sequence IDs. Ensure operations are idempotent so retries don't cause duplicate side effects.

4. Handle user experience and fallbacks

Gracefully degrade to non-streaming or cached responses, and provide clear error messages. Allow users to retry or continue from where they left off.

5. Ensure observability and testing

Log errors with context, monitor failure rates, and test failure scenarios with chaos engineering. This ensures the strategy is robust and debuggable.

Key Points to Mention

  • Idempotency and exactly-once semantics for retries
  • Exponential backoff with jitter and retry limits
  • Resumability using sequence IDs or checkpoints
  • Graceful degradation and fallback to non-streaming
  • Observability: logging, metrics, and tracing
  • Testing failure modes with chaos engineering

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.