The meaning of "lambda" in computer science is functionally (no pun intended) similar enough to what amazon is selling that people learning programming and nontechnicals or even IT pros who work with programmers will inevitably be confused.
Naming the product something that closely resembles its functionality seems like a great idea for a product. It's still Amazon Lambda, and I think it's very unlikely that people will simply refer to it as "Lambda." If CS students find themselves hopelessly confused by this product name, they are going to have a real hard time tying their own shoes.
If you search for Y Combinator, luckily, https://en.wikipedia.org/wiki/Y_combinator still shows up on the first page of results, I expect the same will be true for Lambda, so I can confidently say we won't lose a generation of CS students to this faux pas.
And, as I've noticed in the past, searching for "y combinator" + any language name will often keep useful results away until you finally block this site. I'm not sure if this is still comprehensively true, but it seemed so to me at one point. So there is a very real impact on search results that can happen.
If you tried to sell ecommerce software under the name Amazon, you would get a cease-and-desist very quickly.