AWS Lambda as an Application Load Balancer target?

First, apologies if this is not the correct forum for this question.

At AWS’ 2018 re:invent, AWS announced that Lambda functions can now be the target of Application Load Balancers (documentation here).

I just want to ensure that I understand AWS previous offerings (e.g., my current setup) correctly — that is, if AWS API Gateway is setup to proxy to an AWS Lambda function, AWS already spins up / balances requests, correct?