Provider Comparisons

Cloud Computing Terminology: Key Terms Explained

Last update:
April 28, 2026
2 mins read

To get started with cloud infrastructure, it's essential to understand its nomenclature. Terminology can vary depending on the provider, however the terms listed below are industry standards.

This guide is a cloud computing 101, breaking down key terms you'll encounter when working with modern GPU clouds.

Cloud Computing Terminology Table

Term Definition Further Reading
Hyperscaler Large cloud providers offering massive global infrastructure (e.g., AWS, Azure, Google Cloud).
Instance A virtual machine running in the cloud with allocated compute resources.
On Demand Instances Instances billed per second or minute with no long-term commitment. Read more
Reserved Instances Instances purchased at a discount in advance and for a certain period.
Spot Instances Discounted instances using spare capacity, which can be interrupted with little notice. Read more
GPU-as-a-Service (GPUaaS) Cloud model where GPUs are rented on demand for compute workloads. Read more
Neocloud A newer category of GPU cloud providers focused on AI workloads. Read more
CUDA Cores Programmable processing units in NVIDIA GPUs used for general computation. Read more
Tensor Cores Specialized GPU cores optimized for AI and matrix operations. Read more
Egress Fees Charges for transferring data out of a cloud provider’s network. Read more
LLM Inference The process of running a trained large language model to generate outputs. Read more
Supervised Fine-Tuning (SFT) Training a model on labeled data to improve task-specific performance. Read more
Computer Vision A field of AI that enables machines to interpret and analyze images and video. Read more

Takeaway

This glossary is just the starting point. For deeper dives into pricing, infrastructure, and performance comparisons, explore the Thunder Compute blog.

By building a strong foundation in cloud computing terminology, you'll be better equipped to navigate the rapidly evolving landscape of GPU cloud infrastructure.

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