GPU Cloud Pricing: Dedicated vs Spot vs packet.ai

GPU cloud pricing can be confusing. Different providers use different terms, and the trade-offs aren't always clear. Here's a straightforward comparison.

Dedicated / Reserved Instances

What it is: You commit to paying for a GPU for a fixed period (usually 1-3 years) in exchange for a discount.

Pros:

Guaranteed capacity
Predictable budgeting
Lower per-hour cost than on-demand

Cons:

Large upfront commitment
No flexibility if needs change
Locked into specific hardware

Best for: Steady-state workloads with predictable, high-utilization demand over long periods.

Spot Instances

What it is: Bid on unused capacity at discounted rates. Your instance can be terminated with short notice if someone pays more.

Pros:

Significant discounts (50-90% off)
Access to capacity that would otherwise sit idle

Cons:

Interruption risk
Requires checkpointing strategy
Complex to manage
Unreliable for production workloads

Best for: Large-scale batch processing where interruptions are acceptable.

packet.ai: Lower Rates, No Compromises

What it is: On-demand GPUs with competitive hourly rates, enabled by our dynamic placement technology that drives higher infrastructure utilization.

How we're different:

No interruptions — Your workload runs to completion
No capacity bidding — Straightforward hourly pricing starting at $0.66/hour
Full hardware performance — Not sliced or artificially limited
Instant availability — Spin up a GPU in under 5 minutes

We achieve spot-like pricing without spot-like complexity. Our technology allows us to run GPUs at higher utilization, and we pass those savings directly to you.

How to Choose

Ask yourself these questions:

Is my workload consistent 24/7? If you're running at high utilization continuously for years, reserved instances might make financial sense.
Can I handle random interruptions? If your workload can checkpoint and resume gracefully, spot instances offer savings for batch jobs.
Do I want simplicity with good pricing? packet.ai gives you on-demand flexibility at rates that rival spot—without the interruption risk or complexity.

The right choice depends on your specific workload patterns. But if you've been assuming that competitive prices require long commitments or unreliable spot instances, packet.ai offers a better option.