For questions relating to virtual machine images (Amazon Machine Image) on Amazon's EC2 infrastructure.
Amazon Web Services Elastic Compute Cloud (hence, EC2) provides scalable and resizeable a la carte compute services in regions around the world. One of their goals is to "make web-scale cloud computing easier for developers".
Ec2 provides access to a large variety of compute services, ranging from a 'free tier' of smaller 'instance' types, to extremely powerful and specialized systems.
Across AWS EC2, an AMI is an Amazon Machine Image, which provides all of the information needed to launch a given machine. An AMI contains a template for the root volume of the instance (or VM), the permissions for where and how it is launched, and any block device (storage) mappings.
Any machine, including pre-configured machines of your own, can be imaged into an AMI which is then re-lauched, modified, or the like. This can be extremely useful for taking a snapshot of a machine and then redeploying it at a later time, or in a different location or availability zone.