Once you oversubscribe GPU memory, performance usually collapses. Frameworks like vLLM can explicitly offload things like the KV cache to CPU memory, but that's an application-level tradeoff, not transparent GPU virtual memory.
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On isolation: in Shared NVSwitch Multitenancy mode, isolation is enforced at multiple layers. Fabric Manager programs the NVSwitch routing tables so GPUs in different partitions cannot exchange NVLink traffic, and each VM receives exclusive ownership of its assigned GPUs via VFIO passthrough. Large providers apply additional hardening and operational controls beyond what we describe here. We're not claiming this is equivalent to AWS's internal threat model, but it does rely on NVIDIA's documented isolation mechanisms.
For me, the hardest part was virtualizing GPUs with NVLink in the mix. It complicates isolation while trying to preserve performance.
AMA if you want to dig into any of the details.