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Seems like serverless is the way to go for fast output while remaining inexpensive.

e.g.

I think that's true if you're doing minimal usage / low utilization, otherwise a dedicated instance will be cheaper.

You are correct. The pricing model guarantees this. Pay per compute vs pay for uptime (during which you could have more compute for cheaper)

I think cold start times will be excessive for serverless in this use case.

3 second cold start is good enough for me.