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Showing content from https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/instance-optimize-cpu.html below:

CPU options for Amazon EC2 instances

CPU options for Amazon EC2 instances

Many Amazon EC2 instances support simultaneous multithreading (SMT), which enables multiple threads to run concurrently on a single CPU core. Each thread is represented as a virtual CPU (vCPU) on the instance. An instance has a default number of CPU cores, which varies according to instance type. For example, an m5.xlarge instance type has two CPU cores and two threads per core by default—four vCPUs in total.

In most cases, there is an Amazon EC2 instance type that has a combination of memory and number of vCPUs to suit your workloads. However, to optimize your instance for specific workloads or business needs, you can specify the following CPU options during and after instance launch:

Considerations Pricing

There is no additional or reduced charge for specifying CPU options. You're charged the same as instances that are launched with the default CPU options.

Enable EBS optimization

Rules for specifying CPU options for an Amazon EC2 instance

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