VPS (Virtual Private Server)
Last updated: February 16, 2026
A VPS (Virtual Private Server) is a virtualized server that provides a dedicated slice of a physical machine's resources -- CPU, RAM, storage, and bandwidth -- at a fraction of the cost of a dedicated server. Each VPS operates independently with its own operating system and root access, giving users full control over their environment while sharing the underlying hardware with other tenants.
How It Works
A VPS is created by running a hypervisor on a physical server. The hypervisor (such as KVM, Xen, or VMware) divides the host machine into multiple isolated virtual machines, each with guaranteed resource allocations. Unlike shared hosting, where resources are pooled and performance can be unpredictable, a VPS ensures that your allocated CPU cores and memory are reserved for your workloads.
Users connect to their VPS via SSH, install software, configure services, and manage the system just as they would on a dedicated physical machine. Most VPS providers offer a range of operating system images (Ubuntu, Debian, CentOS) and allow snapshots for quick backups and recovery. Popular VPS providers include DigitalOcean, Hetzner, Linode, and Vultr, with plans starting at a few dollars per month for basic configurations.
Why It Matters
A VPS strikes a practical balance between the low cost of shared hosting and the full control of a dedicated server, making it one of the most popular options for self-hosting applications. For running an AI assistant like OpenClaw, a VPS provides the root access needed to install Docker, configure persistent storage, set up reverse proxies, and manage environment variables -- all without the overhead costs of a full cloud platform.
The predictable resource allocation of a VPS is particularly valuable for AI assistant workloads. You can select a plan with sufficient RAM and CPU to handle your expected traffic, and upgrade to a larger plan as usage grows. For individuals and small teams looking to self-host their AI assistant on a budget while maintaining full control over their data, a VPS is often the most cost-effective starting point.