AWS Lambda has introduced support for packaging serverless functions as container images, allowing developers to deploy custom Docker or OCI images, which expands the deployment options beyond the traditional zip archives. This advancement leverages the widespread adoption of container images as a standard for application packaging, enabling developers to use familiar tools and languages, deploy functions with custom operating systems and runtimes, and support larger application packages up to 10 GB. The new feature facilitates scenarios where binaries and libraries aren't available as package manager modules and improves the development experience for non-native AWS Lambda languages. Additionally, it provides Enterprise customers with greater control through centralized image building and security governance. Despite similarities with AWS Fargate, Lambda's per-request scaling, cost structure, and native AWS service integration make it suitable for unpredictable workloads and applications that benefit from event-driven execution. Pulumi is highlighted as a tool for managing container-based Lambda deployments, as demonstrated through an example of serverless video processing using infrastructure as code to automate resource provisioning and management on AWS.