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Each lambda execution runs in it's own container. So if you have one warm container and you have a spike in lambda invocations in a short enough time to increase your concurrency you'll get a cold start for the new containers. For example if your concurrency is 1 and have a burst of traffic that raises your concurrency to 10 you'll see 9 cold-starts. This blog is a great resource for understanding how all of this works. I'd also encourage you to look through the lambda best practices as they detail lots of steps that help reduce the cold-start time.
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