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In this lecture, the speaker discusses creating a custom AMI that will include all updates and Java 8 installed. The AMI will also contain the necessary app for the course, downloaded from GitHub. This custom AMI will be used for various purposes such as auto-scaling, load-balancing, troubleshooting, and choosing the right EC2 instance type. The viewer is encouraged to create their own AMI to follow along with the lecture. The process involves launching an instance based on Amazon's Linux, choosing a t2.micro instance type, and leaving the instance details as default.