AMP (Accelerated Mobile Pages) is an open-source library that creates web pages that load instantly. It uses HTML with restrictions and AMP-specific components to optimize page performance. The AMP cache delivers cached AMP pages via a CDN. AMP works by asynchronously loading resources, statically sizing elements, prioritizing loads, and only allowing certain animations. It improves user engagement through speed while allowing mobile-friendliness and SEO benefits. AMP has requirements like specific tags and boilerplate but also limitations like disallowing external CSS, JavaScript, and certain elements.