An App Deployment represents an AI/ML application deployed using a Profile Bundle; the Profile Bundle must contain a Workload Profile with the type Application. An App Deployment is the primary method that data scientists and ML engineers use to deploy their workloads onto Compute Pools.
A Model Deployment deploys AI/ML models to a Compute Pool for inference. It abstracts the infrastructure required to host and serve models, simplifying the user experience for data scientists by eliminating direct infrastructure management. It is implemented as an AIWorkload resource with the palette.ai/aiworkload-type: model label.