Hello @Rhea George
Sorry for the late response and thanks for reaching out to us in Microsoft Q&A, for your question - Does Azure OpenAI work with service principal authentication? The answer is yes.
Please refer to below document about How to Configure Azure OpenAI with Managed Identities
https://learn.microsoft.com/en-us/azure/cognitive-services/openai/how-to/managed-identity
Please let me know if you have more questions, thanks a lot.
Regards,
Yutong
-Please kindly accept the answer if you feel helpful to support the community, thanks a lot.