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This video tutorial teaches viewers how to create their own custom Amazon Machine Image (AMI) from an EC2 instance. An AMI contains all the necessary information to boot an Amazon EC2 instance with custom software, serving as a virtual machine template. Creating your own AMI is crucial for building infrastructure utilizing EC2 auto scaling groups to automatically scale up or down based on application requirements. AMIs are the basic unit of deployment, allowing auto scaling groups to dynamically boot new custom instances as needed.