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Cloud · head to head

DigitalOcean vs Lambda Labs

DigitalOcean logo

DigitalOcean

Cloud

The developer cloud

From
Free
Rated
-
Full reviewWebsite
Lambda Labs logo

Lambda Labs

AI

GPU cloud for deep learning

From
$1.1/per-hour
Rated
-
Full reviewWebsite

The short version

  • Only DigitalOcean has a free tier, so it costs nothing to try first.
  • Each has a real cost: DigitalOcean data transfer overage charged at $0.01 per GiB beyond included allowances; Lambda Labs on demand capacity is first come access rather than guaranteed, so an instance type can be unavailable when needed
  • They diverge on capability: DigitalOcean covers Droplets (VPS), Lambda Labs covers NVIDIA GPUs.

Where they differ

Only the attributes on which DigitalOcean and Lambda Labs actually diverge.

Attributes where DigitalOcean and Lambda Labs differ
AttributeDigitalOceanLambda Labs
Starting priceFree$1.1/per-hour
Free tierYesNo
PlatformsLinux, Cloud (AWS, GCP, Azure backend)Cloud
CategoryCloudAI
Founded20112012

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 DigitalOcean

  • Droplets (VPS)
  • Managed Kubernetes
  • App Platform
  • Managed Databases
  • Spaces (Object Storage)
  • Floating IPs
  • Load Balancers
  • Firewalls

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.

DigitalOcean

  • Developers seeking affordable VPS starting at $4/month for small applicationsnot Lambda Labs
  • Teams deploying containerised workloads with Kubernetes starting at $12/month cluster costnot Lambda Labs
  • Data scientists and ML engineers requiring NVIDIA GPU access at $1.91/GPU/hour (committed)not Lambda Labs

Lambda Labs

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

Where each one falls short

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

DigitalOcean

  • Data transfer overage charged at $0.01 per GiB beyond included allowances
  • Free tier includes only 3 static sites; additional static sites require paid upgrade
  • Container registry free tier capped at 500 MiB storage; exceeding requires paid tier
  • Functions free tier allows 90,000 GiB-seconds monthly; overages billed on usage basis
  • GPU Droplets require minimum monthly commitment for lower hourly rates; on-demand significantly more expensive

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

DigitalOcean

Free

No published plan breakdown. See the DigitalOcean review.

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 DigitalOcean if

  • You need droplets (vps).
  • You want to start without paying.
  • You work on Linux, Cloud (AWS, GCP, Azure backend).
  • You also want managed kubernetes.
DigitalOcean 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 DigitalOcean or Lambda Labs better?
Neither clearly leads. DigitalOcean 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, DigitalOcean or Lambda Labs?
DigitalOcean has a free tier; the other does not. Paid plans start at Free for DigitalOcean and $1.1/per-hour for Lambda Labs.
Does DigitalOcean or Lambda Labs run on more platforms?
DigitalOcean runs on Linux, Cloud (AWS, GCP, Azure backend). Lambda Labs runs on Cloud.
Can I use DigitalOcean for free?
Yes. DigitalOcean has a free tier, so you can try it without paying. Lambda Labs starts at $1.1/per-hour.
What is DigitalOcean best used for?
DigitalOcean is most often used for developers seeking affordable vps starting at $4/month for small applications, teams deploying containerised workloads with kubernetes starting at $12/month cluster cost, data scientists and ml engineers requiring nvidia gpu access at $1.91/gpu/hour (committed). Of those, developers seeking affordable vps starting at $4/month for small applications and teams deploying containerised workloads with kubernetes starting at $12/month cluster cost are not what Lambda Labs is typically brought in for.
What can DigitalOcean do that Lambda Labs cannot?
DigitalOcean covers Droplets (VPS), Managed Kubernetes, App Platform, Managed Databases. Lambda Labs covers NVIDIA GPUs, Pre-installed frameworks, Persistent storage, SSH access.

Answered from the vendors’ own pages

DigitalOcean: How much does a DigitalOcean Droplet cost?

The cheapest Basic Droplet is $4.00 per month, or $0.00595 per hour, and includes 1 vCPU, 512 MiB of memory, 10 GiB of SSD and 500 GiB of transfer. The next step up is $6.00 per month with 1 GiB of memory, 25 GiB of SSD and 1,000 GiB of transfer.

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
DigitalOcean: How is DigitalOcean billed?

Droplets are billed hourly as well as monthly, and DigitalOcean states that Bundled Plan and v5 Droplets are billed on a per second basis with a 60 second minimum charge.

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
DigitalOcean: What does the cheapest DigitalOcean plan include?

At $4.00 per month you get a single vCPU, 512 MiB of memory, 10 GiB of SSD storage and 500 GiB of outbound transfer. That is the smallest Basic Droplet DigitalOcean sells.

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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