Seriously curious, don’t Firecracker VMs already run on EC2 instances under the hood when they host Lambda and Fargate?
Since I don't work for AWS I'm allowed to say that at the scale of millions/billions of microVMs you're better off running them on bare metal instances to avoid the overhead of nested virtualization.
Unfortunately I'm not at liberty to dive deep into those details. I will say that Firecracker can be used on bare metal EC2 instances, whether you're a public customer or AWS itself. :-)