Yeah, the servers still exist - so "serverless" is a bad name. It's just that the developers don't need to know about them. The idea is that the servers will act like bitcoin mining nodes. The servers come and go, but as long as there are enough of them, all of the programs in the cloud will keep on running.

I think that one of the main goals is to let the developers focus on writing productive code to address their actual needs instead of burning cycles on implementation details for some particular hardware configuration.