On demand
Standard capacity
More predictable access, usually at a higher price.
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What are spot prices?
How short-term, interruptible capacity can become a pricing signal.
In compute markets, spot prices usually refer to the cost of short-term capacity that is available only when providers have spare supply. It is often cheaper than standard capacity because it can be interrupted when the provider needs that capacity back.
Cheaper capacitySpot
Spot capacity is often discounted because it uses spare supply.
Interruptible accessCaution
The provider can reclaim the capacity, so it is not suitable for every workload.
Example
A simple way to compare spot and standard capacity
Interruptible
Spot capacity
Lower-cost access to spare capacity, but with the risk of interruption.
The discount is the trade-off buyers receive for accepting less certainty.
Market mechanics
Why spot capacity exists
- Providers sometimes have unused capacity they would rather monetize than leave idle.
- Buyers with flexible workloads may accept interruption in exchange for lower prices.
- Spot markets help reveal the value of spare capacity at a given moment.
- The available pool can vary by region, chip type, and time.
Market context
What spot prices can reveal
- Whether spare compute capacity appears abundant or scarce.
- Whether buyer demand is pressing into short-term supply.
- Whether a chip type is easy or difficult to access at the margin.
- Whether the market is loosening even before headline contract prices change.
Common mistake
Spot is not simply "cheap compute"
Spot capacity is cheaper because the buyer accepts a different product: lower certainty, possible interruption, and less suitability for workloads that cannot easily stop and restart.
Cost
Price
Usually lower than standard access.
Access
Reliability
Lower because the provider may reclaim capacity.
Fit
Workload fit
Best for jobs that can tolerate interruption.
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