A reservation is sized for a baseline, not a peak, and the peak is what breaks the service level agreement. Reserved capacity discounts on ordinary cloud compute typically run 30 to 60 percent against on-demand rates, and they only pay off above a utilization break-even point computed as (1 minus discount rate) times term length per ProsperOps. Buy for peak and you pay for idle capacity most of the month. Buy for average and the peak is the exact moment you have no cover.
AI inference sharpens this because GPU hours cost far more than CPU hours. One infrastructure vendor describes AI traffic peaks running 3 to 10 times average load, and notes that provisioning a dedicated endpoint for a 10x peak means 9 idle GPU hours for every hour of real production per GMI Cloud. Their operational signal is useful: a queue depth above 50 pending requests per GPU indicates incoming traffic has outrun serving throughput, and below that the existing configuration still has headroom.
The model price gap is just as wide. On Bedrock, an older mid-tier model bills at $6.00 input and $30.00 output per million tokens, while a small-model tier sits at $1.00 and $5.00 per Inventive HQ. A comparison sheet tells you the small model is cheaper. It does not tell you what to do at 14:20 on the day the reservation is dry and the queue is 80 deep per GPU. Spilling that traffic to on-demand keeps the expensive model and only changes the billing code; a difficulty router changes the model instead.



