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How does Step Functions avoid the cold start problem? Isn’t it just executing on Lambda?

No, StepFunctions is a different beast. I didn't build it, so I'm just guessing but I suspect it's running a shared backend for all state machines so there is no static initialization, etc. to speak of.

Don't be confused that you _can_ call Lambada from StepFunctions, but that's a different beast (and a bit of an anti-patter IMHO).

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