AWS Lambda has released a new feature called Provisioned Concurrency, which makes the service more resilient to cold starts during bursts of network traffic. This feature ensures that functions remain initialized and ready to handle requests in milliseconds, mitigating cold starts and optimizing serverless application performance. The update includes metrics for monitoring Provisioned Concurrency usage, allowing developers to identify underprovisioned functions, adjust allocation in real-time, and troubleshoot performance issues with Datadog's integration.