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What is Spot Instance?

Unused cloud capacity offered at up to 90% discount that can be reclaimed with 2-minute notice.

Spot Instances (AWS) or Preemptible VMs (GCP) are unused compute capacity available at up to 90% discount. The catch: the cloud provider can reclaim them with a 2-minute warning when capacity is needed. Spot instances are ideal for fault-tolerant, stateless workloads — batch jobs, CI/CD runners, and scale-out application tiers. In Kubernetes, Karpenter handles Spot instance interruptions gracefully by draining nodes and rescheduling pods.

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