Cloud Computing for AI Systems from First PrinciplesPost 18 of 19 · 19 of 19 written
- How to use this guide
- 01The core mental model
- 02The physical layer
- 03Virtualization: how one machine becomes many
- 04Compute for AI: GPUs and accelerators
- 05Back-of-envelope math for AI workloads
- 06Storage and data
- 07Networking
- 08Identity, security and compliance
- 09Orchestration: running fleets, not machines
- 10Infrastructure as code and delivery
- 11Distributed training in the cloud
- 12Inference and serving
- 13Reliability and observability
- 14Cloud economics
- 15The provider landscape
- 16Fluency toolkit: the questions to ask
- 17Hands-on learning path
- 18Glossary
- 19Resources worth your time
18. Glossary
Cloud · 18 of 194 min readOct 2026
Cloud · Post 18 of 194 min readOct 2026
The terms you will hear most, alphabetically, each with the part that explains it.
| Term | Meaning | Part |
|---|---|---|
| All-reduce | Every GPU contributes a tensor and all receive the sum; used to average gradients | 11 |
| ANN index | Approximate nearest neighbor index (HNSW, IVF) that makes vector search fast at some cost in recall | 6 |
| Arithmetic intensity | FLOPs performed per byte moved; decides whether work is memory-bound or compute-bound | 4 |
| Availability zone (AZ) | Independent data center(s) within a region; the basic unit of failure | 2 |
| BF16 | 2-byte number format with FP32’s range; the default for training and inference | 4 |
| Blast radius | How much breaks when one thing fails or one change goes wrong | 13 |
| Canary deployment | Sending a small share of traffic to a new version before all of it | 10 |
| CIDR | Notation for IP address ranges; /16 means 16 fixed bits |
7 |
| Cold start | Delay while a new instance provisions, pulls its image and loads its model | 3, 12 |
| Continuous batching | Requests join and leave the running batch at every decoding step | 12 |
| Control plane | The APIs that create, change and permission resources | 8 |
| CUDA | NVIDIA’s GPU programming platform and library ecosystem | 4 |
| Data gravity | Large data is slow and costly to move, so compute moves to it | 1, 7 |
| DCGM | NVIDIA’s GPU monitoring toolkit and metrics exporter | 13 |
| Egress | Data leaving a cloud, region or zone; usually billed per GB | 7 |
| Envelope encryption | Data encrypted with a data key, which is itself encrypted by a master key in a KMS | 8 |
| Error budget | The failure your SLO permits: 100% minus the target | 13 |
| FinOps | The practice of managing and attributing cloud cost | 14 |
| FSDP / ZeRO | Sharding weights, gradients and optimizer state across data-parallel GPUs | 11 |
| Gang scheduling | Starting all parts of a distributed job together or none at all | 9 |
| Goodput | The share of time or requests that produced useful results meeting targets | 11, 12 |
| HBM | High-bandwidth memory stacked beside a GPU; its main memory | 4 |
| Hypervisor | Software that runs multiple VMs on one physical machine | 3 |
| IaC | Infrastructure as code: cloud resources defined in versioned files | 10 |
| IAM | Identity and access management: who may do what on which resource | 8 |
| Idempotency | Doing an operation twice has the same effect as doing it once | 13 |
| InfiniBand / RoCE / EFA | High-bandwidth, low-latency networks with RDMA for GPU clusters | 4, 7 |
| KV cache | Stored attention keys and values for past tokens during generation | 5, 12 |
| Least privilege | Granting only the permissions a task needs | 8 |
| LoRA / QLoRA | Fine-tuning small adapter matrices on a frozen (optionally 4-bit) base model | 5 |
| MFU | Model FLOPs utilization: achieved FLOPs divided by peak | 5, 11 |
| MIG | Hardware partitioning of one GPU into isolated slices | 4 |
| NAT gateway | Lets private machines make outbound connections; billed per GB | 7 |
| NCCL | NVIDIA’s library for collective communication between GPUs | 11 |
| Neocloud | A GPU-focused cloud provider such as CoreWeave, Lambda or Nebius | 15 |
| NVLink / NVSwitch | NVIDIA’s direct high-speed GPU-to-GPU links inside a server or rack | 4 |
| Object storage | Whole files stored by key behind an HTTP API, such as S3 | 6 |
| OIDC federation | Letting an outside identity (such as a CI job) assume a cloud role without stored keys | 8 |
| PagedAttention | Storing the KV cache in fixed-size blocks to avoid fragmentation | 12 |
| Prefill / decode | Processing the prompt in parallel (compute-bound) vs generating tokens one by one (memory-bound) | 5, 12 |
| Prefix caching | Reusing the KV cache of a shared prompt prefix | 12 |
| RDMA / GPUDirect | Network transfers straight into another machine’s (or GPU’s) memory without the CPU | 4 |
| Reconciliation loop | A controller that keeps moving reality toward declared desired state | 9 |
| Region | A geographic group of availability zones | 2 |
| Roofline model | Performance is capped by either compute or memory bandwidth, depending on intensity | 4 |
| RPO / RTO | How much data you can lose / how long recovery may take | 13 |
| SLI / SLO / SLA | What you measure / your target / your contractual promise | 13 |
| Speculative decoding | A cheap draft proposes tokens that the large model verifies in one pass | 12 |
| Spot instance | Spare capacity at a deep discount that can be reclaimed at short notice | 11, 14 |
| Static stability | Staying up during an outage without needing to create new resources | 8 |
| Taint / toleration | Kubernetes marks that keep ordinary pods off special nodes such as GPUs | 9 |
| Tensor parallelism | Splitting individual weight matrices across GPUs; needs NVLink-class links | 11 |
| TTFT / TPOT | Time to first token / time per output token | 12 |
| vCPU | One hardware thread, usually half a physical core | 3 |
| VPC | Your isolated, software-defined private network in a region | 7 |