Bare metal hosting for AI workloads: achieving maximum performance and data isolation

Only a decade or so ago, most of us hardly even knew what artificial intelligence (AI) was. Yet today, this technology powers everything from email spam filters and streaming services to self-driving cars and drones. In fact, we’ve come so far that thousands of individuals and companies are making their own AIs.

And just like advanced systems such as ChatGPT or Gemini, these homegrown AI tools rely on computer hardware to train and process data. The downside is that such systems require powerful hardware, which can put a significant dent in your pocket.

Fortunately, that’s precisely where renting comes in, with most individuals and startups interested in AI opting to rent bare metal servers. To find out why that’s the case, Cybernews researchers and I dug into this type of hosting and explored its types, strengths, and drawbacks.

What is bare metal hosting?

At its core, bare metal hosting refers to leasing an entire physical server for yourself. In fact, you can think of it as renting a house. When you do that, you’re the sole tenant, so the entire property belongs to you, and you have complete control over everything that happens.

This type of hosting is in sharp contrast to virtual private servers (VPS) or even public cloud ones. That’s because both of these rely on virtualization (hypervisors) to share a single physical server’s resources between multiple users. As such, these servers would be more like renting an apartment, as there could be numerous other tenants in the same building as you.

As you can imagine, the fact that you’re the only tenant makes bare metal servers more expensive than both VPS and cloud ones. However, you’re also getting top-tier performance and security, as there are no hypervisors involved and no other tenants to pose security risks.

Types of bare metal servers

Most hosting providers, Liquid Web included, offer two types of bare metal servers: CPU- and GPU-based. So, how do these differ from one another, and which one should you pick for what?

CPU bare metal servers

CPU-based bare metal hosting uses powerful Intel and AMD multi-core central processing units (CPUs) to handle your workloads. While you’ll find a variety of chips here, most higher-end servers rely on either the blue team’s Xeons or the red team’s EPYC CPUs.

This type of hosting excels at handling tasks that rely on sequential computation. Such servers are also typically available on a monthly payment basis, with lower-end options starting at approximately $40/month. Meanwhile, higher-end servers can go up to $800/month or more.

GPU bare metal servers

On the other hand, GPU-based bare metal hosting relies on high-end graphics processing units (GPUs). These servers are better suited for tasks that require parallel processing, such as online gaming platforms and eCommerce sites.

Most GPU servers use NVIDIA chips, as they offer immense processing power while remaining quite efficient. Liquid Web, for example, uses L4 and L40S-powered servers for lighter workloads, while NVIDIA’s modern H100 chips power its top-end servers.

When it comes to pricing, GPU-based bare metal servers are typically available at hourly rates. And while some providers offer flexibility in terms of payments, you can expect to pay more for GPU servers, primarily because of their sheer processing power.

CPU vs. GPU-based bare metal hosting for AI workloads

Both CPU- and GPU-based bare metal servers have their pros and cons, but which one should you go with when it comes to AI tasks? To answer that, we should compare the two server types in more detail, so let’s do that:

Type	CPU-based	GPU-based
Processing units	Intel CPUs (Xeon, Xeon Gold, and Xeon Scalable) and AMD CPUs (EPYC)	NVIDIA GPUs (L4, L40S, H100, A10, A40, A100, V100, B200) and AMD GPUs (Instinct MI300X)
Processing style	Sequential	Parallel
Ease of setup	High	Moderate
Scalability	Low	Moderate
Energy consumption	From 500W to 2,000W+	From 600W to 40,000W+
Pricing	$30/month – $1,000/month	$0.80/hour – $10/hour
Typical use cases	High-performance and data-intensive applications	Machine learning and natural language processing

As you can see, ML and NLP operations are typically handled on GPU-based bare metal servers. And since these are crucial for AI workloads, such servers become the go-to option for all things AI-related, with their immense parallel processing power being the cherry on top.

Benefits of choosing bare metal hosting for AI over cloud servers

While you could technically train an AI using a VPS or a cloud server, opting for bare metal hosting is, in most cases, a much better idea. After all, these servers offer certain advantages that you just can’t get with cloud and shared environments, such as the ones below.

Top-tier performance

AI workloads can push infrastructure to its limits. With these types of tasks, every ounce of power matters, and bare metal servers excel at providing exactly that. Since there are no performance-impacting hypervisors with bare metal servers, these hosting plans ensure that every part of the server operates at its maximum potential.

Predictable resource allocation

When you choose bare metal hosting over a cloud environment or a VPS, you become the sole tenant of a physical server. With this kind of setup, the “noisy neighbor” effect becomes irrelevant, as everything the server offers in terms of resources is yours to use as you see fit.

Better security and data isolation

If your AI workloads involve handling sensitive data, security can make or break your operations. Fortunately, bare metal servers offer physical separation, as opposed to the virtual boundaries of cloud servers. This results in complete data isolation, making your confidential information much more secure.

Easier compliance with security standards

Businesses in certain industries have to meet strict compliance requirements to operate legally. And while adhering to these security standards can be a challenge with cloud hosting due to its multi-tenant setup, that’s not the case with bare metal servers. With these, organizations in healthcare or finance can easily achieve HIPAA or PCI compliance.

Complete control over hardware

As the only user on a physical server, you automatically become the admin and gain the power to configure every aspect of it as you see fit. This means having complete control over the operating system the server uses, as well as the drivers and software.

Remote access from anywhere

Whether you opt for Linux or go for Windows, you’ll have access to these operating systems’ respective remote management tools: SSH and remote desktop access. With these at your disposal, you’ll be able to oversee your server from anywhere in the world, as long as you have an internet connection.

Drawbacks of using bare metal servers over cloud environments

While going bare metal has its advantages, these servers aren’t without downsides either. Here are some areas where they fall short:

• Higher costs. Compared to cloud servers or VPS, bare metal plans come at a higher price. In fact, they’re more expensive regardless of whether you’re renting on a monthly or hourly basis.
• Limited scalability. While bare metal plans let you add more servers (horizontal scaling) or upgrade hardware (vertical scaling), their scalability pales in comparison to cloud servers. These setups allow you to add or remove resources as needed, at your discretion.
• Slower deployment. Going the bare metal route over the cloud environment typically means manual provisioning and, thus, longer wait times before your server is ready. That is, unless you go with a provider that offers automated provisioning, such as Liquid Web.

How to choose the right hosting partner for your AI workloads

Finding a hosting provider that aligns with your goals, while fitting within your budget, can be a real challenge. To help you out, we’ve compiled a list of expert tips that can make this process at least a little bit easier. That said, here’s what you should consider:

• Choose the right type of hosting. Unless you’re dealing with the most basic of AI tasks, you’ll want to go with hosting plans that give you full access to the server’s resources. This means opting for bare metal rather than VPS or cloud environments.
• Pick the right type of server. Not all bare metal servers are created equal. While CPU-based ones are great for general-purpose computing, real AI workloads require higher parallel processing power, making GPU bare metal servers the go-to choice.
• Evaluate the provider. With the type of hosting and server figured out, you’re free to explore the various providers that offer what you’re after. But before you opt for any one of these, you should first evaluate their hardware, look into their pricing, and check customer support availability and response times.
• Verify compliance certifications. Although not always a requirement, especially for individuals, a provider’s adherence to specific security standards can matter. If your company is in one of the industries that have to comply with HIPAA or PCI, you’ll have to manually vet the provider.

Final thoughts: are bare metal servers the right choice for AI?

While there have been multiple leaps in AI in the past few years, these systems still require massive amounts of power to process data. That’s precisely why having the right hardware is crucial for the success of your AI-related projects.

Unless you’re buying, which isn’t an option for most individuals and startups, you’ll be looking at renting hardware from various hosting providers. And although there are plenty of choices here, bare metal plans are the go-to option for most AI enthusiasts for several reasons.

Unlike cloud servers and VPS, bare metal hosting allows you to utilize 100% of the physical server’s resources, offering unmatched performance. Going this route also means you’re getting top-tier security and complete data isolation since there are no other tenants to worry about here.

That said, bare metal servers are by no means ideal, especially in terms of pricing and scalability. But at the end of the day, they’re the best we have for all serious AI workloads.

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