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Understanding GPU Pricing: Spot vs On-Demand

Pulserun Team·2026-02-28·4 min read

On-Demand Instances

On-demand instances are the standard option. You request a GPU, you get it, and it stays yours until you terminate it. Pricing is fixed and predictable.

**Best for:** Production inference endpoints, long-running training jobs where interruption is costly.

Spot Instances

Spot instances use excess provider capacity at a significant discount — often 50-70% cheaper than on-demand. The catch: they can be preempted (terminated) with little notice when demand increases.

**Best for:** Fault-tolerant training jobs, batch processing, experiments.

The Preemption Problem

The biggest risk with spot instances is losing your work. If a training job gets preempted after 6 hours, you might lose all progress since the last checkpoint.

How Pulserun Handles Spot

Pulserun's spot recovery system polls for preemptions every 30 seconds. When a preemption is detected:

  1. We immediately find the cheapest replacement instance
  2. Auto-provision the new instance
  3. Restore from the latest checkpoint
  4. Resume your workload

Most users experience less than 2 minutes of downtime, and with proper checkpointing, zero data loss.

The Best of Both Worlds

With Pulserun's Autopilot, you can run on spot instances and get near-on-demand reliability. Set a budget, enable spot recovery, and let automation handle the rest.

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