Power BI Premium and Power BI Embedded serve different use cases, though both offer scalable capacity and enhanced performance.

Power BI Premium is designed for enterprise-wide business intelligence. It provides dedicated cloud capacity for your organization, enabling features like large dataset support, paginated reports, AI capabilities, and on-premises reporting with Power BI Report Server. It is ideal for internal users who consume reports through the Power BI service. Premium is licensed per capacity or per user (P SKU or PPU), and it enables organization-wide data sharing without requiring individual Pro licenses for viewers.

Power BI Embedded, on the other hand, is intended for Independent Software Vendors (ISVs) and developers who want to embed Power BI reports and dashboards into custom applications or portals for external users. It allows full control over the embedding experience via APIs and doesn't require end users to have Power BI licenses. It is metered and billed through Azure as an A SKU, making it flexible for ISVs and scalable based on usage.