In AWS Lambda does the thread limit apply per lambda instance

Question

In this doc Lambda Quotas it mentions that Execution processes/threads have an unmodifiable quota of 1024.

1. Does this mean that if I have a lambda then all instances of that lambda combined can concurrently only use up to 1024 threads.

2. Or does it mean that each instance of the lambda can use 1024 threads. So if there are 4 invocations of the lambda at the same time they can use up to 4096 threads in total?

Answer 1

Number 2 is correct. That limit is applied to each lambda instance.