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AWS (Amazon Web Services) vs Lambda

AWS (Amazon Web Services) logo

AWS (Amazon Web Services)

Cloud

The leading cloud computing platform

From
Free
Rated
-
Full reviewWebsite
Lambda logo

Lambda

Cloud

GPU supercomputers for AI training and inference at enterprise scale

From
On request
Rated
-
Full reviewWebsite

The short version

  • Only AWS (Amazon Web Services) has a free tier, so it costs nothing to try first.
  • Each has a real cost: AWS (Amazon Web Services) data transfer in is free and data transfer out is charged, which is the standard source of unexpected bills; Lambda no free tier or trial, requiring immediate commitment for testing
  • They diverge on capability: AWS (Amazon Web Services) covers EC2 - Virtual Servers, Lambda covers Superclusters.

Where they differ

Only the attributes on which AWS (Amazon Web Services) and Lambda actually diverge.

Attributes where AWS (Amazon Web Services) and Lambda differ
AttributeAWS (Amazon Web Services)Lambda
Starting priceFreeOn request
Pricing modelusage-basedPay-as-you-go hourly pricing with volume discounts for reserved capacity
Free tierYesNo
PlatformsWeb, Api, Cli, MobileCloud
Founded20062012

Identical on both: user rating (Not yet rated), category (Cloud).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in AWS (Amazon Web Services)

  • EC2 - Virtual Servers
  • S3 - Object Storage
  • RDS - Managed Database
  • Lambda - Serverless Computing
  • CloudFront - CDN
  • VPC - Virtual Network
  • IAM - Access Management
  • CloudWatch - Monitoring

Only in Lambda

  • Superclusters
  • 1-Click Clusters
  • On-demand instances
  • Liquid cooling
  • InfiniBand networking
  • Managed orchestration
  • Co-engineering support

What people use each for

The jobs each tool is most often brought in to do.

AWS (Amazon Web Services)

  • Web hostingnot Lambda
  • Data storagenot Lambda
  • Machine learningnot Lambda
  • Big data analyticsnot Lambda
  • Application developmentnot Lambda

Lambda

  • Training foundation models at scale with dedicated GPU infrastructurenot AWS (Amazon Web Services)
  • Large-scale inference serving on enterprise-grade hardwarenot AWS (Amazon Web Services)
  • Multi-GPU distributed training with InfiniBand networkingnot AWS (Amazon Web Services)
  • Single-tenant secure compute for regulated industriesnot AWS (Amazon Web Services)
  • AI lab infrastructure for frontier model developmentnot AWS (Amazon Web Services)

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

AWS (Amazon Web Services)

  • Data transfer in is free and data transfer out is charged, which is the standard source of unexpected bills
  • Discounts require one or three year Savings Plan commitments rather than being automatic
  • Every service is priced separately, so a working architecture has no single published cost
  • The free tier is a promotional allowance rather than an ongoing free plan

Lambda

  • No free tier or trial, requiring immediate commitment for testing
  • Single-tenant Superclusters require custom pricing discussions
  • Pricing complexity across multiple GPU types and cluster sizes
  • Less suitable for experimentation or small teams with tight budgets

Pricing, plan by plan

AWS (Amazon Web Services)

Free
  • AWS Free TierFree
    • EC2 750 hours/month
    • 5GB S3 storage
    • 20GB data transfer
  • Pay-As-You-GoFree
    • No upfront payment
    • No long-term commitments
    • Pay only for what you use

Lambda

On request
  • 1-Click Clusters B200$undefined/hourly
    • 16 GPUs: $9.86/GPU/hour
    • 256+ GPUs: $8.87/GPU/hour
    • 1-year+ reserved discounts available
  • 1-Click Clusters H100$undefined/hourly
    • 16 GPUs: $6.16/GPU/hour
    • 256+ GPUs: $5.54/GPU/hour
  • On-Demand Instances B200$undefined/hourly
    • SXM6: $6.69/GPU/hour
  • On-Demand Instances H100$undefined/hourly
    • SXM: $3.99/GPU/hour

Which should you pick?

Choose AWS (Amazon Web Services) if

  • You need ec2 - virtual servers.
  • You want to start without paying.
  • You work on Web, Api, Cli, Mobile.
  • You also want s3 - object storage.
AWS (Amazon Web Services) review

Choose Lambda if

  • You need superclusters.
  • You work on Cloud.
  • You also want 1-click clusters.
Lambda review

Questions people ask

Is AWS (Amazon Web Services) or Lambda better?
Neither clearly leads. AWS (Amazon Web Services) starts at Free and Lambda at On request, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, AWS (Amazon Web Services) or Lambda?
AWS (Amazon Web Services) has a free tier; the other does not. Paid plans start at Free for AWS (Amazon Web Services) and On request for Lambda.
Does AWS (Amazon Web Services) or Lambda run on more platforms?
AWS (Amazon Web Services) runs on Web, Api, Cli, Mobile. Lambda runs on Cloud.
Can I use AWS (Amazon Web Services) for free?
Yes. AWS (Amazon Web Services) has a free tier, so you can try it without paying. Lambda starts at On request.
What is AWS (Amazon Web Services) best used for?
AWS (Amazon Web Services) is most often used for web hosting, data storage, machine learning, big data analytics. Of those, web hosting and data storage are not what Lambda is typically brought in for.
What can AWS (Amazon Web Services) do that Lambda cannot?
AWS (Amazon Web Services) covers EC2 - Virtual Servers, S3 - Object Storage, RDS - Managed Database, Lambda - Serverless Computing. Lambda covers Superclusters, 1-Click Clusters, On-demand instances, Liquid cooling.

Answered from the vendors’ own pages

AWS (Amazon Web Services): What are AWS's payment options and pricing models?

AWS offers four pricing approaches: pay-as-you-go (you pay only for what you use), flat-rate plans combining multiple services into one monthly price without overages, Savings Plans offering discounts on compute and machine learning with 1- or 3-year commitments, and volume-based tiered pricing where costs decrease as usage increases.

Source
Lambda: What makes Lambda's infrastructure different?

Lambda offers single-tenant Superclusters with exclusive GPU access, liquid cooling, and NVIDIA Quantum-2 InfiniBand networking. The company is 100% focused on AI infrastructure with co-engineering support from teams who built infrastructure for major AI labs.

Source
AWS (Amazon Web Services): Are there contracts, termination fees, or commitments required for AWS?

No long-term contracts are required for AWS services. No termination fees apply once you stop using the service. Savings Plans provide optional 1- or 3-year commitments with discounted hourly rates, but you can revert to pay-as-you-go pricing anytime.

Source
Lambda: How does pricing work for large clusters?

1-Click Clusters pricing ranges from $5.54-$9.86 per GPU/hour depending on GPU type and cluster size, with volume discounts for 256+ GPUs. Reserved capacity is available at custom pricing for 1-year+ commitments.

Source
AWS (Amazon Web Services): Does AWS offer a free tier?

AWS provides a free tier that offers hands-on experience with AWS products at no charge. The free tier allows new customers to try eligible services before committing to paid usage.

Source
Lambda: Which GPU types are available?

Lambda offers NVIDIA B200, H100, A100, and Tesla V100 GPUs. Individual instances range from V100 at $0.79/hour to B200 SXM6 at $6.69/hour. Newer models like Vera Rubin are available in Superclusters.

Source
AWS (Amazon Web Services): How do I estimate my AWS costs?

AWS provides the AWS Pricing Calculator and Cost Explorer tool to estimate costs for single or multiple services. AWS also offers cost optimization recommendations, performance reporting, and budget alerts to help track and control spending.

Source
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