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Deafult CPU allocation ratio 0.0 means 16.0. You have set it to 4.0. If you have 100 cpu threads, you allocate 400 vCPUs to the VMs. Create VMs and see the overcommit in action. Once vCPU usage reaches 400, you won't be able to create VMs. nova host-describe shows actual CPU threads available and vCPUs used.