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Cloud ML from Google is serverless technology, If serverless architecture doesn’t care about how many servers were created behind the scene then why do we give scale tier option in Cloud ML.

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Serverless architecture does care how many servers are created behind the scenes. It may affect things like response time. The difference is that you don't have to care about individual server creation and maintenance. - Seva Alekseyev

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Serverless doesn't mean that your application or process is not running under a server, obviously it is. Serverless is an abstract concept, is a type of architecture where the servers "doesn't exists" to the developer, they don't have to worry about anything, only develop the code, set parameters as you pointed, the maximum number of servers or their Memory utilization (to not to have an enormous bill at the end of the month), and then their app will work and autoscale when it's needed.