A team is deploying a foundation model in Azure AI Foundry and must choose between a serverless API endpoint and a managed compute endpoint. The model will be used exclusively for internal batch evaluation runs that occur once a day for approximately 30 minutes. Which deployment approach is most cost-effective for this scenario?
- A. Managed compute endpoint with autoscale configured to scale to zero when idle
- B. Managed compute endpoint with a dedicated GPU VM that runs continuously
- C. Serverless API endpoint with a reserved capacity commitment
- D. Serverless API endpoint billed per token consumed✓ Correct
Explanation
A serverless API endpoint billed per token is the most cost-effective option for a low-frequency, short-duration batch workload because you pay only for the tokens processed during the 30-minute window each day, with no idle compute charges. A dedicated GPU VM running continuously incurs 24/7 compute costs regardless of usage, which is wasteful for a 30-minute daily job. While managed compute with scale-to-zero could reduce costs, Azure AI Foundry managed compute does not natively support scale-to-zero for all deployment types, and cold-start latency makes it unsuitable; serverless endpoints avoid this entirely. A serverless endpoint with a reserved capacity commitment adds a fixed upfront cost that is only economical for sustained high-volume workloads, not intermittent daily batch jobs.