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+# AWS Spot Instance Analysis for GPU Training
+
+**Date**: 2026-03-04
+**Context**: Cost optimization for verl-agent/VAGEN RL training on AWS GPU instances
+
+## Spot Pricing vs On-Demand
+
+### Single-GPU (Development/Validation)
+
+| Instance | GPU | VRAM | On-Demand | Spot | Savings |
+|----------|-----|------|-----------|------|---------|
+| g5.xlarge | 1x A10G | 24GB | $1.006/hr | $0.43/hr | 57% |
+| g5.2xlarge | 1x A10G | 24GB | $1.21/hr | ~$0.52/hr | 57% |
+| g6.xlarge | 1x L4 | 24GB | $0.805/hr | $0.38-0.55/hr | 31-53% |
+
+### Multi-GPU (Production Training)
+
+| Instance | GPUs | VRAM | On-Demand | Spot | Savings |
+|----------|------|------|-----------|------|---------|
+| g5.12xlarge | 4x A10G | 96GB | $5.67/hr | $2.90/hr | 49% |
+| g6.12xlarge | 4x L4 | 96GB | $4.60/hr | $2.26/hr | 51% |
+
+**g6 (NVIDIA L4) is a viable alternative** to g5 (A10G) — both have 24GB VRAM per GPU. L4 has better inference performance, which suits RL's rollout-heavy workload.
+
+## Cost Projections
+
+### 7-Day Training Run (Multi-GPU)
+
+| Strategy | Hourly | 7-Day | vs On-Demand |
+|----------|--------|-------|-------------|
+| On-Demand g5.12xlarge | $5.67 | $953 | baseline |
+| Spot g5.12xlarge | $2.90 | $488 | -49% |
+| Spot g6.12xlarge | $2.26 | $380 | -60% |
+
+With ~7% interruption rate and 15-min checkpoints, expect ~10-15% overhead from re-computation. Adjusted real savings: 42-55%.
+
+## Interruption Risk
+
+- AWS overall: 95% of spot instances run to completion
+- GPU instances: estimated 5-10% interruption rate in trailing month
+- **AZ-level variance is significant** — some AZs >20% while others <5%
+- 2-minute termination warning via instance metadata
+- For a 24-hour run with ~7% rate: expect 1-2 interruptions
+
+## Recommendations
+
+1. **Start with spot for dev/validation** (g5.xlarge at $0.43/hr)
+
+2. **For multi-GPU production training**, use EC2 Fleet with:
+   - Instance types: g5.12xlarge + g6.12xlarge (diversification)
+   - Allocation strategy: `price-capacity-optimized`
+   - Regions: us-east-1 primary, us-east-2 fallback
+
+3. **Checkpoint to S3 every 15 minutes** — do NOT rely on EBS survival
+
+4. **Add termination handler** — poll instance metadata every 5s, trigger immediate checkpoint on 2-min warning
+
+5. **Set `DeleteOnTermination=false`** on EBS volumes, or better yet, use S3 for all checkpoints
+
+## Gotchas
+
+- **EBS deleted on spot termination by default** — must change or use S3
+- **p3 (V100) incompatible** with OSS NVIDIA driver (needs GSP/Ampere+)
+- **g4dn (T4) only 16GB VRAM** — likely insufficient for VLM RL
+- **SageMaker Managed Spot** adds 15-40% markup, not recommended for custom verl-agent loops
+- **Reattaching EBS across AZs requires snapshots** — S3 checkpoints avoid this entirely
+
+## Implementation TODO
+
+- [ ] Add spot instance support to `aws_vm.py` (`create_vm` with `InstanceMarketOptions`)
+- [ ] Add S3 checkpoint upload to training loop
+- [ ] Add termination handler (metadata polling + checkpoint trigger)
+- [ ] Add g6 instance types to `GPU_INSTANCE_TYPE_FALLBACKS` in `aws_vm.py`
+- [ ] Test EC2 Fleet with `price-capacity-optimized` allocation