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Now that this is open source, I wonder if it could be integrated into Kubernetes (or the like) for everyone to use instead of just AWS.

Firecrackers been open source since 2018, I believe. Firecracker-containerd (https://github.com/firecracker-microvm/firecracker-container...) has been around quite a while too, which aims to run containers in microvms.

Appears to be trying just what you ask.