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Azure Functions vs Lambda

Azure Functions logo

Azure Functions

Cloud

Event-driven serverless compute on Azure

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 Azure Functions has a free tier, so it costs nothing to try first.
  • Each has a real cost: Azure Functions consumption plan free grant is capped at 1 million executions and 400,000 GB-seconds of resource consumption per month per subscription, billed per GB-second beyond that; Lambda no free tier or trial, requiring immediate commitment for testing

Where they differ

Only the attributes on which Azure Functions and Lambda actually diverge.

Attributes where Azure Functions and Lambda differ
AttributeAzure FunctionsLambda
Starting priceFreeOn request
Pricing modelusage-basedPay-as-you-go hourly pricing with volume discounts for reserved capacity
Free tierYesNo
PlatformsWebCloud
FoundedUnknown2012

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 Azure Functions

Nothing recorded that Lambda does not also cover.

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.

Azure Functions

  • Event-driven computingnot Lambda
  • Serverless application backendnot Lambda
  • Scalable API endpointsnot Lambda

Lambda

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

Where each one falls short

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

Azure Functions

  • Consumption plan free grant is capped at 1 million executions and 400,000 GB-seconds of resource consumption per month per subscription, billed per GB-second beyond that
  • The newer Flex Consumption plan's free grant is smaller still, at 250,000 executions and 100,000 GB-seconds per month
  • Premium plan avoids per-execution charges but bills continuously for allocated core seconds and memory regardless of invocation volume
  • Memory is rounded up to the nearest 128 MB and execution time to the nearest 1 ms for billing, so small overages round upward

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

Azure Functions

Free
  • Consumption Plan$null/month
    • 1 million requests free monthly
    • 400,000 GB-seconds free monthly
    • Billed per second and executions
  • Flex Consumption Plan$null/month
    • 250,000 executions free monthly
    • 100,000 GB-seconds free monthly
    • Event-driven scaling
  • Premium Plan$null/month
    • No execution charges
    • At least one instance required
    • Includes automatic scaling and VNET access

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 Azure Functions if

  • You want to start without paying.
Azure Functions review

Choose Lambda if

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

Questions people ask

Is Azure Functions or Lambda better?
Neither clearly leads. Azure Functions 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, Azure Functions or Lambda?
Azure Functions has a free tier; the other does not. Paid plans start at Free for Azure Functions and On request for Lambda.
Does Azure Functions or Lambda run on more platforms?
Azure Functions runs on Web. Lambda runs on Cloud.
Can I use Azure Functions for free?
Yes. Azure Functions has a free tier, so you can try it without paying. Lambda starts at On request.
What is Azure Functions best used for?
Azure Functions is most often used for event-driven computing, serverless application backend, scalable api endpoints. Of those, event-driven computing and serverless application backend are not what Lambda is typically brought in for.
What can Azure Functions do that Lambda cannot?
Lambda covers Superclusters, 1-Click Clusters, On-demand instances, Liquid cooling.

Answered from the vendors’ own pages

Azure Functions: Does Azure Functions have a free tier?

Yes, Azure Functions includes a monthly free grant of 1 million requests and 400,000 GB-seconds on the Consumption Plan, or 250,000 executions and 100,000 GB-seconds on Flex Consumption.

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
Azure Functions: What is Azure Functions' pricing model?

Azure Functions uses usage-based pricing. Consumption plans charge per second of resource consumption and per execution, measured in gigabyte-seconds and rounded to the nearest 128 MB.

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
Azure Functions: What is the minimum execution time for Azure Functions?

The minimum execution time is 100 milliseconds on Consumption plans. Premium plans charge based on core seconds and allocated memory.

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
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