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Your impression is correct for VPS-style "clouds", like Digital Ocean and co.

Its fully wrong for AWS, where a vCPU you rent == physical core/thread.

That statement is counter to how "vCPUs" related to "CPU" since early cloud implementation. AWS not taking advantage of the much more efficient "oversubscription ratio" versus thread pinning - unlikely.

Are you certain of this statement?

How do you know this implementation detail?

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