Istio 1.31 is out, and one line in the release notes says a lot about where API infrastructure is heading. You can now run agentgateway, a proxy built for AI agent and MCP traffic, as a waypoint inside the mesh.

If “waypoint” means nothing to you yet, that’s fine. Here’s the short version, then why it matters if you build APIs.

What changed in 1.31

Istio’s ambient mode splits the mesh in two. A small per-node component handles encryption and basic connectivity. Anything that needs to understand HTTP, like routing, auth policy or rate limits, goes through a separate proxy called a waypoint. You opt services into a waypoint with a label.