What type of instance does not retain data after it is stopped or terminated?

Choosing an ephemeral instance is accurate since such instances are designed to not retain any data once they are stopped or terminated. In cloud computing, ephemeral instances are often utilized for temporary, short-lived tasks where data doesn't need to persist after the instance's lifecycle is complete. They are perfect for stateless applications or processes where the focus is on processing data rather than storing it.

This characteristic makes ephemeral instances particularly useful in scenarios where minimal resource utilization is desired or where rapid scaling is essential, as they can be created and destroyed quickly. Additionally, this feature helps in ensuring that temporary data does not clutter storage, optimizing overall resource management.

In contrast, the other types of instances typically have different retention behaviors. Permanent instances usually maintain data throughout their lifecycle and are intended for long-term use. Dynamic instances may adapt to changing workloads but do not inherently imply a lack of data retention. Serverless instances, while they abstract infrastructure management and can optimize for stateless applications, do not necessarily mean that data is lost after termination, as they can interact with persistent storage solutions.