How much memory can a Lambda function allocate at maximum?

AWS Lambda allows you to allocate memory to a function with a maximum limit of 10,240 MB (or 10 GB). This capability is particularly important because the amount of memory allocated directly impacts the CPU and other factors such as networking and disk throughput associated with the Lambda function.

As the memory size increases, not only does the function have access to more RAM, but the available CPU resources also scale proportionately. This makes it crucial to understand memory allocation when optimizing Lambda functions for performance.

The correct answer signifies awareness of AWS's memory allocation limits for Lambda functions, showcasing a good understanding of how to leverage Lambda's capabilities effectively for increased performance in serverless applications.