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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 EC2 instance with custom software, serving as a virtual machine template. Creating your own AMI is essential for building an infrastructure utilizing EC2 auto scaling groups, which require self-configurable instances to automatically scale based on application requirements. AMIs serve as the basic unit for deployment, enabling auto scaling groups to boot new custom instances as needed.