Doesn't AWS Lambda and API Gateway use servers? Why are they called 'Serverless'?

Question

I am testing AWS Lambda and API Gateway. I read that they are used in serverless infrastructure of AWS because end-users don't have to set up or manage servers.

But to my knowledge, AWS Lamda stores code in AWS, and API Gateway stores APIs in AWS. Don't they use servers to store data and process data? I think they are using some servers like EC2 to handle requests. Then why are they called serverless?

Are they called serverless on user's perspective?

I want to know if they are truly serverless. And if so, how do they manage to do that?

Answer 1

Are they called serverless on user's perspective?

Yes, it is for the End user, who wants to run functions on AWS Lambda. User does not have to provision servers/VMs/Containers for it. AWS abstracts the hardware and the kind of hardware on which the functions will execute. It can execute it on a EC2 server or on a container running on ECS or some other way.

Suppose if the VM goes down, AWS can choose a new VM to execute the Lambda functions on, auto scaling is also taken care of.

Some one has to provision and manage servers, in this case AWS takes care of it for you.