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In this video tutorial, the focus is on creating a 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, acting as a virtual machine template. Creating your own AMI is essential for building infrastructure with EC2 auto scaling groups. Auto scaling groups require self-configurable instances to automatically scale up or down based on application requirements. Your AMI serves as the basic unit of deployment, enabling the auto scaling group to boot new custom instances as needed.