Computing resources such as servers and storage, rented over the internet from a provider that owns and runs the hardware and bills by use.
Cloud Computing provides elastic capacity on demand, but enterprise AI has led many organizations to reconsider how they use it, because of data privacy laws and high data egress costs. A common result is a hybrid architecture: training runs in the cloud, while inference stays within On-Premises Private AI infrastructure.
See also On-Premises, Private AI, Air-Gapped Environment, Role-Based Access Control and Zero Trust Architecture.