Don‘t underestimate the massive cpu power needed for scaling images at their request rate
The main scaling challenge here is serving and bandwidth, both of which are handled by their CDN. I expect 5 figure costs for that but the rest of the platform is very expensive.
Just because everything is in AWS doesn’t force you to use all of AWS services.
But since images are immutable, this is a perfect use-case for lambda functions fronted by a CDN.