Cloud Computing for AI Systems from First PrinciplesPost 15 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
15. The provider landscape
The market splits into four groups: hyperscalers with hundreds of services, GPU-focused clouds, serverless and inference platforms, and European providers. The concepts are identical across all of them; only the names differ, which the table below translates.
Hyperscalers
- AWS - the largest provider with the broadest catalog and the most job postings. Its own AI chips are Trainium and Inferentia. Bedrock offers model APIs from several vendors, including Anthropic; SageMaker AI covers training and deployment.
- Google Cloud - strongest in data and analytics (BigQuery), the only home of TPUs, and GKE is widely regarded as the most polished managed Kubernetes. Vertex AI offers Gemini plus partner models.
- Microsoft Azure - deep enterprise integration through Entra ID and Microsoft 365, and the main cloud for OpenAI models, alongside a growing catalog of others. Very common in large German companies.
- Oracle Cloud - smaller overall but a major seller of very large GPU clusters.
GPU clouds, marketplaces and inference platforms
- GPU clouds (“neoclouds”) such as CoreWeave, Lambda, Nebius and Crusoe focus on GPUs. They often price lower, hand you Kubernetes or Slurm clusters with fast interconnects, and offer far fewer surrounding services.
- Marketplaces such as RunPod and Vast.ai rent individual GPUs, some hosted by third parties. They are the cheapest option, with variable reliability and security, so keep sensitive or client data off community-hosted machines.
- Serverless GPU and inference platforms such as Modal, Baseten, Together AI and Fireworks AI run your code or open models on demand and bill by the second or by the token.
European options
- Hetzner (Germany) - very cheap CPU servers and some dedicated GPU servers. Excellent for learning and side projects.
- STACKIT (Schwarz Group, Germany) and IONOS (Germany) - sovereignty-focused clouds aimed at German businesses and the public sector.
- OVHcloud and Scaleway (France) - broad clouds with GPU offerings.
- Open Telekom Cloud (T-Systems) and Nebius (headquartered in Amsterdam, with European GPU data centers).
The trade-off: easier GDPR and sovereignty stories and often lower prices, in exchange for fewer managed services and a smaller ecosystem.
Translation table
| Concept | AWS | Google Cloud | Azure |
|---|---|---|---|
| Isolation boundary | Account (in an Organization) | Project (in folders and an organization) | Subscription (in management groups) |
| Virtual machines | EC2 | Compute Engine | Virtual Machines |
| Object storage | S3 | Cloud Storage | Blob Storage |
| Block storage | EBS | Persistent Disk / Hyperdisk | Managed Disks |
| Shared or parallel file storage | EFS / FSx for Lustre | Filestore / Managed Lustre | Azure Files / Managed Lustre |
| Private network | VPC | VPC | Virtual Network (VNet) |
| Firewall rules | Security groups | VPC firewall rules | Network security groups |
| Load balancing | Elastic Load Balancing (ALB, NLB) | Cloud Load Balancing | Load Balancer / Application Gateway |
| DNS | Route 53 | Cloud DNS | Azure DNS |
| CDN | CloudFront | Cloud CDN | Front Door |
| Identity and access | IAM, IAM Identity Center | Cloud IAM | Entra ID with Azure RBAC |
| Secrets and keys | Secrets Manager, KMS | Secret Manager, Cloud KMS | Key Vault |
| Managed Kubernetes | EKS | GKE | AKS |
| Container registry | ECR | Artifact Registry | Azure Container Registry |
| Serverless functions | Lambda | Cloud Run functions | Azure Functions |
| Serverless containers | Fargate (with ECS or EKS) | Cloud Run | Container Apps |
| Queues and messaging | SQS, SNS | Pub/Sub | Service Bus, Event Grid |
| Workflows | Step Functions | Workflows | Logic Apps, Durable Functions |
| Relational database | RDS, Aurora | Cloud SQL, AlloyDB | Azure Database for PostgreSQL |
| Key-value / document database | DynamoDB | Firestore, Bigtable | Cosmos DB |
| Data warehouse | Redshift | BigQuery | Fabric, Synapse |
| ML platform | SageMaker AI | Vertex AI | Azure Machine Learning |
| Model API platform | Bedrock | Vertex AI (Model Garden) | Azure AI Foundry |
| Custom AI chips | Trainium, Inferentia | TPU | Maia (mostly internal) |
| Monitoring and logs | CloudWatch | Cloud Monitoring, Cloud Logging | Azure Monitor |
| Audit log | CloudTrail | Cloud Audit Logs | Activity Log |
| Native infrastructure as code | CloudFormation, CDK | Infrastructure Manager | Bicep, ARM templates |
Which to learn first
Learn the concepts once and one provider deeply; the second provider then takes weeks, not months. AWS appears most often in job postings overall, Azure is strong in large German enterprises, and Google Cloud is popular with data- and ML-heavy teams. For AI infrastructure roles specifically, the strongest combination is Kubernetes, one hyperscaler, and hands-on experience with a GPU cloud. Check the postings for the roles you want and let them decide.
Check yourself
- Translate this sentence into Google Cloud terms: “We run vLLM on EKS with Karpenter, weights in S3, secrets in Secrets Manager.”
- When would you choose a GPU cloud over a hyperscaler for training? And for serving?
- What is the risk of processing a client’s data on a community-hosted marketplace GPU?