AWS Lambda is an on-demand compute service by Amazon Web Services that enables users to run code in response to events or HTTP requests without the need to manage servers, offering scalability and a pay-per-use model. Supported languages include JavaScript (Node.js), Python, Java, and C#. This week's Python coding challenge, presented by Michael Herman from Real Python, involves creating an AWS Lambda function triggered by an event to perform an action, such as processing an image added to S3 or responding to an HTTP request via API Gateway. Participants are encouraged to learn new skills, have fun, and contribute their solutions to the community by submitting a Pull Request to the challenges repository, with outstanding contributions featured in the weekly challenge review.