- December 30, 2025
- 3 min read
Serverless vs. Dedicated AI Inference: Choosing the Right Friendli Endpoint for Your Workload

When you need to run model inference for your application, a common question comes up: How should we deploy it?
Should we use a fully managed, shared setup or reserve a fully managed deployment with dedicated GPUs? The answer depends on latency tolerance, traffic predictability, and how much control and model coverage you need.
At FriendliAI, these two approaches are offered as Serverless API (Serverless Endpoints) and Dedicated Endpoints, each designed to support different AI inference requirements. Both are fully managed by FriendliAI, so teams don’t need to operate GPU infrastructure themselves. Serverless runs on shared GPUs for fast, elastic access, while Dedicated reserves GPUs exclusively for your workloads to provide stronger guarantees and broader deployment flexibility.
This guide walks through how they differ and how to choose the right one for your workload today, with a clear path to scale tomorrow.
Core Difference: Shared vs. Reserved GPUs
At the foundation, the difference between Serverless and Dedicated Endpoints comes down to how GPU resources are allocated.
| Serverless Endpoints | Dedicated Endpoints |
|---|---|
| • Run on shared GPUs
• Instantly available via a simple API call | • Run on fully reserved GPUs
• Provide isolation and consistent performance |
This architectural distinction directly affects performance predictability, cost efficiency, SLAs, and model coverage.
Performance Predictability & SLAs
Different applications have different tolerance levels for latency variability.
| Serverless Endpoints | Dedicated Endpoints |
|---|---|
| Provide best-effort performance on shared GPUs. Latency is generally low, but throughput and response times can fluctuate depending on overall system demand.
Because of this, Serverless works well for: • User-facing applications with relaxed latency constraints • Production workloads that do not require strict SLAs • Asynchronous or background inference Serverless is not limited to experimentation. It can power real production use cases as long as latency guarantees are not critical. | Provide SLA-backed availability and predictable latency, since compute resources are fully reserved for your workloads.
They are a strong fit when: • Latency consistency directly impacts user experience • Inference is part of a mission-critical workflow • SLAs are required |
If your application requires strict performance guarantees or supports mission-critical user experiences, Dedicated Endpoints are the right fit.
Cost Efficiency at Different Scales
Cost efficiency depends more on traffic patterns and workload characteristics.
| Serverless Endpoints | Dedicated Endpoints |
|---|---|
| • Cost-effective for low, bursty, or unpredictable traffic
• Pay only for actual inference time or tokens processed • No idle GPU cost | • More efficient as traffic grows and stabilizes
• Higher utilization of reserved GPUs • Lower per-request cost at scale |
In practice, many teams use Serverless early on and transition to Dedicated as workloads become steady and predictable.
Model Coverage & Deployment Flexibility
Beyond performance and cost, endpoint choice also affects which models you can run and how much control you have over them.
| Serverless Endpoints | Dedicated Endpoints |
|---|---|
| Provide immediate access to a shared catalog of popular open-source models, making it easy to experiment, compare models, and deploy quickly without operational overhead.
This approach is ideal for standardized models and rapid iteration. | Unlock both broader model coverage and deeper control.
They enable you to deploy: • Fine-tuned or LoRA-adapter models • Specialized or custom architectures • Models that are not available in shared serverless environments |
For teams that need ownership over their models or broad coverage, Dedicated Endpoints is essential.
When to Use Which
Use Serverless Endpoints if you are:
- Exploring or evaluating popular open-source models
- Running low, bursty, or unpredictable traffic
- Serving production workloads with relaxed latency constraints
- Prioritizing speed of iteration and simplicity
Use Dedicated Endpoints if you are:
- Serving workloads that require SLAs
- Operating at scale with steady, high traffic
- Deploying fine-tuned, private, or proprietary models
- Requiring broader model coverage and deeper control
A Natural Migration Path
Many teams start with Serverless Endpoints to move quickly, then transition to Dedicated Endpoints as requirements evolve.
With Friendli Inference, this transition is seamless. You don’t need to switch platforms, rewrite integrations, or adopt a new serving stack—just switch the deployment model as your workload grows.
Choosing the Right Endpoint, Today and Tomorrow
Serverless and Dedicated Endpoints are not competing options. They are complementary tools designed for different inference needs.
The right choice depends on your latency sensitivity, traffic patterns, performance requirements, and model coverage needs. Whether you’re serving lightweight inference or operating at scale, Friendli Inference lets you start fast and scale confidently without locking you into a single deployment model.
Get started with Serverless Endpoints in minutes, or choose Dedicated Endpoints when your workload calls for predictable performance, deeper control, and expanded model coverage.
Written by
FriendliAI Tech & Research
Share
General FAQ
What is FriendliAI?
FriendliAI is a GPU-inference platform that lets you deploy, scale, and monitor large language and multimodal models in production, without owning or managing GPU infrastructure. We offer three things for your AI models: Unmatched speed, cost efficiency, and operational simplicity. Find out which product is the best fit for you in here.
How does FriendliAI help my business?
Our Friendli Inference allows you to squeeze more tokens-per-second out of every GPU. Because you need fewer GPUs to serve the same load, the true metric—tokens per dollar—comes out higher even if the hourly GPU rate looks similar on paper. View pricing
Which models and modalities are supported?
Over 380,000 text, vision, audio, and multi-modal models are deployable out of the box. You can also upload custom models or LoRA adapters. Explore models
Can I deploy models from Hugging Face directly?
Yes. A one-click deploy by selecting “Friendli Endpoints” on the Hugging Face Hub will take you to our model deployment page. The page provides an easy-to-use interface for setting up Friendli Dedicated Endpoints, a managed service for generative AI inference. Learn more about our Hugging Face partnership
Still have questions?
If you want a customized solution for that key issue that is slowing your growth, contact@friendli.ai or click Talk to an engineer — our engineers (not a bot) will reply within one business day.

