Modal's serverless pricing can't be directly compared to traditional on-demand or spot instance pricing.
Traditional cloud compute doesn't have instant spin-up times. You might spend 10+ minutes provisioning an instance and another 5 terminating it. You also have to commit to a minimum usage time per instance, usually between 1 minute and 1 hour. All this time is billable. In contrast, Modal spins containers up and down in 1-2 seconds. You don't commit to any minimum usage time per instance.
Even though our per-hour prices may sometimes appear higher, your overall costs are lower if your request volumes are spiky or unpredictable. Modal autoscales fast, so you pay for significantly less non-execution time versus traditional compute. You also save on cost by not having to over-provision compute to handle peak loads.