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Azure Functions vs Lambda Labs

Azure Functions logo

Azure Functions

Cloud

Event-driven serverless compute on Azure

From
Free
Free plan
Yes
Full reviewWebsite
Lambda Labs logo

Lambda Labs

AI

GPU cloud for deep learning

From
$1.1/per-hour
Free plan
No
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 Labs on demand capacity is first come access rather than guaranteed, so an instance type can be unavailable when needed
  • Prices and features above were last checked on 30 August 2026.

Where they differ

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

Attributes where Azure Functions and Lambda Labs differ
AttributeAzure FunctionsLambda Labs
Starting priceFree$1.1/per-hour
Free tierYesNo
PlatformsWebCloud
CategoryCloudAI
FoundedUnknown2012

Identical on both: pricing model (usage-based), user rating (Not yet rated).

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 Labs does not also cover.

Only in Lambda Labs

  • NVIDIA GPUs
  • Pre-installed frameworks
  • Persistent storage
  • SSH access
  • JupyterLab
  • VSCode
  • SSH
  • Cloud support

What people use each for

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

Azure Functions

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

Lambda Labs

  • Renting GPU instances for model training and inferencenot Azure Functions
  • Short term access to high memory accelerators without buying hardwarenot 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 Labs

  • On demand capacity is first come access rather than guaranteed, so an instance type can be unavailable when needed
  • H100 pricing varies within a band, at $3.99 to $4.29 an hour per GPU, so the rate is not fixed
  • Reserved capacity is arranged by contacting the team rather than self serve
  • Prices are quoted before applicable tax

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 Labs

$1.1/per-hour
  • On-Demand$1.1/per-hour
    • A10 GPU
    • Instant availability
  • ReservedFree
    • Volume discounts
    • Guaranteed capacity

Which should you pick?

Choose Azure Functions if

  • You want to start without paying.
Azure Functions review

Choose Lambda Labs if

  • You need nvidia gpus.
  • You work on Cloud.
  • You also want pre-installed frameworks.
Lambda Labs review

Questions people ask

Is Azure Functions or Lambda Labs better?
Neither clearly leads. Azure Functions starts at Free and Lambda Labs at $1.1/per-hour, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Azure Functions or Lambda Labs?
Azure Functions has a free tier; the other does not. Paid plans start at Free for Azure Functions and $1.1/per-hour for Lambda Labs.
Does Azure Functions or Lambda Labs run on more platforms?
Azure Functions runs on Web. Lambda Labs 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 Labs starts at $1.1/per-hour.
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 Labs is typically brought in for.
What can Azure Functions do that Lambda Labs cannot?
Lambda Labs covers NVIDIA GPUs, Pre-installed frameworks, Persistent storage, SSH access.

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 Labs: What does Lambda Labs GPU pricing depend on?

Lambda Labs pricing depends on the GPU model (H100, B200, A100, V100, etc.), cluster size, and contract length. For example, a 16-GPU H100 cluster costs $6.16/GPU/hour for 2 weeks to 1 year, while A100 GPUs are $1.99-$2.79/GPU/hour.

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 Labs: Are there volume discounts for larger GPU clusters?

Yes. Pricing decreases with larger cluster orders. For example, NVIDIA H100 clusters cost $6.16/GPU/hour for 16 GPUs, $5.85/GPU/hour for 64 GPUs, and $5.54/GPU/hour for 256 GPUs (all for 2 weeks to 1 year terms).

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 Labs: Can I get custom pricing for a long-term GPU contract?

Yes. For cluster orders of 16+ GPUs with 1-year or longer contracts, Lambda Labs offers custom pricing. Contact their sales team to request a quote.

Source
Lambda Labs: What additional costs should I expect beyond the hourly GPU rate?

All listed prices are plus applicable sales tax, VAT, or GST depending on your location.

Source
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