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Cloud Computing Terminology: Key Terms Explained

Cloud Computing Terminology: Key Terms Explained
Last update:
June 4, 2026
3 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 Terms

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
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.
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

Graphic Processing Unit (GPU) Concepts

Term Definition Further Reading
CUDA Cores Programmable processing units in NVIDIA GPUs used for general computation. Read more
DGX NVIDIA's line of purpose-built AI supercomputing systems that integrate multiple GPUs, high-speed interconnects, and optimized software into a single turnkey platform. Read more
HGX NVIDIA's reference server board platform that allows OEM partners to build GPU-accelerated servers by integrating multiple high-end GPUs with NVLink and NVSwitch. Read more
NVLink NVIDIA's high-bandwidth, low-latency GPU-to-GPU interconnect that enables faster data sharing between GPUs than PCIe allows. Read more
NVSwitch NVIDIA's high-speed switch chip that enables full all-to-all NVLink connectivity across multiple GPUs within a node or across nodes. Read more
PCIe A standard high-speed interface used to connect GPUs, storage, and other peripherals to a computer's CPU and motherboard. Read more
ROCm AMD's open-source software platform for GPU computing, providing an alternative to NVIDIA's CUDA ecosystem for running AI and HPC workloads on AMD GPUs. Read more
Transformer Engine A dedicated hardware and software component in NVIDIA GPUs that was first introduced with the Hopper architecture (H100). It accelerates transformer-based AI models by automatically switching between FP8 and FP16 precision. Read more
SXM NVIDIA's high-bandwidth socket form factor for mounting data center GPUs directly onto a baseboard, enabling faster NVLink connections compared to standard PCIe cards. Read more
Shannon Entropy A mathematical measure of the average uncertainty, randomness, or information content inherent in a data source or probability distribution. Read more
Tensor Cores Specialized GPU cores optimized for AI and matrix operations. Read more
Taiwan Semiconductor Manufacturing Company (TSMC) The world's largest semiconductor producer, controlling nearly 70% of the advanced microchips global market. 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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