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Why Lambda Labs Exists: AWS GPU Pricing is Insane

NVIDIA H100 GPU

Lambda Labs exists because AWS charges around $7/hour for H100s while Lambda charges $3/hour for the same hardware. That's it. That's the whole story.

I burned through a $600 AWS bill last month training a moderately-sized model. The same workload on Lambda? $250. Still pisses me off thinking about it.

What Actually Makes Lambda Different

No CUDA Dependency Hell: Every instance comes with Lambda Stack pre-installed. PyTorch, TensorFlow, CUDA drivers - all the versions that actually work together instead of the usual "install PyTorch" → "CUDA not found" → "reinstall drivers" → "now PyTorch won't import" death spiral. I've wasted entire weekends on this shit.

1-Click Clusters That Actually Work: Setting up multi-node training on AWS is a nightmare involving VPCs, security groups, EFA, and about 47 different services. I wanted to throw my laptop out the window debugging this shit. Lambda's 1-Click Clusters actually deploy in under 5 minutes with NCCL over InfiniBand working out of the box. I know because I've done both.

Lambda 1-Click Clusters

No Egress Fees: Download your 500GB model? Free. AWS would charge you $45 for that download. Those egress fees add up fast when you're iterating on models.

The Catch (Because There's Always a Catch)

Capacity is Limited: Good luck getting H100s during major PyTorch releases or conference deadlines. Lambda has way fewer machines than AWS. Plan ahead or you're screwed.

US Only: All their data centers are in the US. If you need EU data residency, you're out of luck. AWS has 87 regions, Lambda has like 3.

No Spot Instances: AWS has spot instances that are 70% cheaper if you can handle interruptions. Lambda is all on-demand pricing.

Real-World Performance Numbers

I ran a 7B model on both - Lambda was 47 minutes and cost $22. AWS took 52 minutes and cost $65. Had to double-check the bill because that price difference made no sense.

Performance difference? Like 10%. Price difference? Still hurts but not as brutal as I expected.

When to Use Lambda vs Alternatives

Use Lambda if: You want cheaper H100s, hate CUDA setup hell, need InfiniBand for multi-node training, or you're tired of AWS's complex billing.

Use AWS if: You need spot instances, require global data centers, want reserved instance discounts, or need enterprise compliance (HIPAA, FedRAMP, etc.).

Use RunPod if: You need even cheaper GPUs and can deal with consumer hardware like RTX 4090s.

The Lambda Stack Actually Works

Lambda Stack Software

Unlike AWS's "figure it out yourself" approach, Lambda pre-installs everything that matters:

  • PyTorch 2.1.2 and CUDA 12.1 - the versions that actually work together. Everything else is whatever's latest stable
  • Jupyter Lab for browser-based development
  • All the NVIDIA drivers that actually work

No version conflicts. No "why won't CUDA see my GPUs" debugging at 3am. It just works.

AI Deep Learning Workstation

Bottom Line for Engineers

Lambda saves you money and time. H100s cost around 60% less than AWS. Setup takes 5 minutes instead of 5 hours fighting with IAM policies. If you can live with US-only data centers and the occasional "no H100s available" during conference season, Lambda beats the hell out of AWS complexity.

Lambda Labs vs Major Cloud GPU Providers

Feature

Lambda Labs

AWS EC2

Google Cloud

Microsoft Azure

RunPod

Paperspace

GPU Types

B200, H100, A100, A10, V100

P4, V100, A100, H100

T4, V100, A100, H100

K80, V100, A100

A100, RTX 4090, H100

M4000, P5000, V100, A100

H100 Pricing

~$3/hr

~$7/hr

~$8.50/hr

~$9/hr

~$2.89/hr

~$3.18/hr

A100 80GB Pricing

~$1.29-1.79/hr

~$33/hr

~$12.48/hr

~$18/hr

~$1.89/hr

~$2.30/hr

Minimum Billing

Per minute

Per hour

Per minute

Per minute

Per minute

Per hour

1-Click Clusters

✅ 16-512 GPUs

❌ Manual setup

❌ Manual setup

❌ Manual setup

❌ Manual setup

❌ Manual setup

Pre-installed ML Stack

✅ Lambda Stack

❌ Manual setup

✅ Deep Learning VM

✅ Data Science VM

✅ Custom templates

✅ ML runtime

Jupyter Access

✅ One-click browser

✅ SageMaker

✅ Vertex AI

✅ Azure ML

✅ Web terminal

✅ Web IDE

InfiniBand Networking

✅ Quantum-2

✅ EFA (limited)

❌ Standard networking

❌ Standard networking

❌ Standard networking

❌ Standard networking

Spot Instances

❌ On-demand only

✅ Available

✅ Preemptible

✅ Low priority

✅ ✅ Spot instances

❌ On-demand only

Enterprise Support

✅ 24/7 technical

✅ Enterprise support

✅ Premium support

✅ Professional support

✅ Discord community

✅ Email support

Data Egress Fees

✅ No egress fees

❌ $0.09/GB

❌ $0.12/GB

❌ $0.087/GB

✅ No egress fees

❌ $0.10/GB

Geographic Regions

US-based

Global (25+ regions)

Global (25+ regions)

Global (60+ regions)

US, EU

US, EU

Free Tier

❌ No free tier

✅ Limited free tier

✅ $300 credits

✅ $200 credits

❌ No free tier

❌ No free tier

API Access

✅ REST API

✅ REST API

✅ REST API

✅ REST API

✅ REST API

✅ REST API

Container Support

✅ Docker pre-installed

✅ Container services

✅ Container services

✅ Container services

✅ Docker support

✅ Docker support

Actually Using Lambda Labs: What Works and What Doesn't

Alright, let's talk about the real experience of getting shit done on Lambda. No corporate marketing nonsense - just what happens when you actually try to train models.

Getting Started is Actually Simple

Unlike AWS where you need a PhD in IAM policies, Lambda signup takes 2 minutes. You give them a credit card, they give you GPUs. That's it.

New accounts start with smaller instances (1-2 GPUs) until they trust you won't mine Bitcoin on their hardware. Fair enough. If you need bigger instances immediately, talk to their engineers - they're surprisingly responsive.

The Dashboard Actually Makes Sense

The Lambda Cloud dashboard makes sense, unlike AWS's nightmare of 847 services you didn't know existed. You pick your GPU, pick your region (all 3 of them), and you're done. Instance boots in 2-3 minutes.

Instance types are sensible:

  • 1 GPU: For development and prototyping
  • 2x/4x/8x GPUs: Multi-GPU training on one box
  • 1-Click Clusters: 16-512 GPUs for when you need to burn money fast

No EC2 instance naming hell like p5.48xlarge.northeastern.cryptic.nonsense.

Lambda Stack: The One Thing That Actually Works

GPU Cluster Architecture

Every instance comes with Lambda Stack pre-installed. This is Lambda's biggest win:

  • PyTorch 2.1.2 with CUDA 12.1 (versions that actually work together)
  • TensorFlow 2.15
  • JAX with proper XLA compilation
  • Jupyter Lab ready to go
  • All NVIDIA drivers configured correctly

I've spent entire weekends trying to get this environment working on other platforms. PyTorch 2.2.0 breaks with CUDA 12.1 in the stupidest ways - import errors, random segfaults, the works. Stick with 2.1.2 until they fix their shit. Here it just works out of the box.

Security: Simple but Scary

Lambda gives you a public IP and SSH access by default. Great for getting started quickly, terrifying for production security folks.

SSH Setup: They generate keys for you during instance creation. You can add your own keys for team access. Just remember to actually secure your shit - Lambda won't do it for you.

Jupyter Access: One-click browser access to Jupyter. SSL works, token auth works. It's fine for development. Don't put production secrets in there.

Jupyter Lab Interface

Production Warning: If you're handling sensitive data, you'll need to lock things down yourself. Lambda's default security is "make it easy to use" not "make it Fort Knox."

Storage: Fast but Ephemeral

Lambda instances come with NVMe SSD storage - usually multiple terabytes. It's fast as hell for loading training data.

The Catch: Storage is ephemeral. Instance dies, your data dies. I learned this the hard way when a host crashed 4 hours into training a 70B model. Lost everything. Think it was around 600GB of checkpoints, maybe more.

Solution: Checkpoint to S3/GCS religiously. I use this script:

## Auto-checkpoint every hour
while true; do
  sleep 3600
  aws s3 sync /models/ s3://my-checkpoints/$(date +%Y%m%d_%H%M)/
done

Cost Optimization That Actually Matters

Lambda bills per minute, not per hour. This is huge for short jobs.

Real optimization strategies:

  • Use 1 GPU for development, 8x for final training runs
  • Kill instances immediately when training finishes
  • Monitor costs in real-time (they show you the running total)

Auto-termination script:

## Kill instance when training finishes
python train.py && sudo shutdown -h now

Save money and avoid the "oh fuck I left 8 H100s running all weekend" panic. I've been there - $2,400 bill for a long weekend. This script? Takes 30 seconds to set up.

When Things Go Wrong

H100 Availability: During popular conference deadlines or PyTorch releases, good luck getting H100s. Lambda has way fewer machines than AWS.

Support Response: Actually helpful humans who understand ML workloads. Way better than AWS's "have you tried turning it off and on again" tier 1 support.

Instance Failures: Rare but they happen. Your data is gone unless you've been checkpointing. No exceptions. Lost 4 hours of fine-tuning a 70B model this way - had to start from scratch.

Bottom Line

Lambda works if you want cheap H100s and can live with US-only regions. Don't use it if you need spot instances or EU compliance. For most ML workloads, Lambda's simplicity and price make it a no-brainer. Just remember to checkpoint religiously or you'll lose your shit like I did.

Questions Engineers Actually Ask About Lambda Labs

Q

Why is Lambda so much cheaper than AWS?

A

Because AWS charges $7/hour for H100s while Lambda charges $3/hour. Lambda doesn't have to subsidize 200+ other services nobody uses. They focus on GPUs and keep costs low.

Q

What's the catch with Lambda's pricing?

A

No egress fees (downloading models is free), per-minute billing instead of hourly, and no surprise charges. The catch is availability

  • they have way fewer machines than AWS. During Py

Torch releases or conference deadlines, good luck getting H100s.

Q

Can I actually get H100s when I need them?

A

Ha, good luck. Lambda has way fewer machines than AWS. During PyTorch releases or conference deadlines, you'll be shit out of luck. A100s are usually available. H100s disappear fast during peak demand. Capacity vanishes during NeurIPS deadlines (December), PyTorch releases, and whenever there's a big ML hype cycle.

Q

Is Lambda Stack worth using or should I roll my own?

A

Use Lambda Stack. I wasted a weekend trying to get Py

Torch, CUDA, and cuDNN working together. The version compatibility matrix is a nightmare

  • PyTorch 2.1.2 works, 2.2.0 breaks with CUDA 12.1 in the stupidest ways. Lambda Stack just works. You can still install whatever else you need on top.
Q

How fast is the 1-Click Cluster setup really?

A

Actually 5 minutes for a 16-node cluster. AWS EKS with EFA takes 2+ hours and requires 47 different IAM policies. Lambda's clusters work out of the box with InfiniBand networking.

Q

What happens if my instance dies during training?

A

Your data is gone. Lambda storage is ephemeral. Checkpoint to S3 every hour or lose your work. I learned this when I lost 3 days of training progress because I thought "local storage" meant "persistent storage". It doesn't.

Q

Is Lambda's security good enough for production?

A

Depends. They give you public IPs by default, which is convenient but scary. SOC 2 compliant infrastructure, but you handle application security. Fine for most ML workloads, not great for HIPAA/financial data.

Q

Can I use Lambda for inference serving?

A

Yes, but specialized inference providers like Replicate or Modal are better for production serving. Lambda is mainly for training.

Q

How's Lambda support compared to AWS?

A

Way better. Actual humans who understand ML, not offshore tier 1 "have you restarted" support. Response times are fast. You can actually talk to engineers who built the platform.

Q

Will my data stay in the US?

A

Yes. Lambda only has US data centers. If you need EU data residency for compliance, you're screwed. AWS has regions everywhere, Lambda has 3 US locations.

Q

Can I get spot pricing like on AWS?

A

No. Lambda is all on-demand pricing. AWS spot instances can be 70% cheaper if you can handle interruptions. Lambda prioritizes simplicity over spot complexity.

Q

How do I integrate with my MLOps pipeline?

A

Lambda has a REST API that works with Weights & Biases, MLflow, etc. Standard Linux instances, so most tools work fine. Enterprise orchestration might need custom integration.

Q

Should I use Lambda instead of AWS for my startup?

A

Probably yes if you're training models. You'll save around 60% on GPU costs. AWS makes sense if you need global regions, spot instances, or complex enterprise services. For pure ML workloads, Lambda wins.

Q

What about RunPod vs Lambda vs CoreWeave?

A
  • Lambda: Best for H100s, great software stack, US only
  • RunPod: Cheapest with consumer GPUs, more locations, spottier reliability
  • CoreWeave: Good enterprise features, more regions, higher prices than Lambda
Q

How do I not lose my model weights?

A

Checkpoint religiously. This script saves my ass:

## Run in background during training
while true; do
  sleep 3600
  aws s3 sync /models/ s3://my-checkpoints/$(date +%Y%m%d_%H%M)/
done

Instance dies? Your latest checkpoint is in S3.

Essential Lambda Labs Resources and Documentation

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