FaaS is a cloud computing model that runs code in small modular pieces or microservices. It allows developers to create and run single functions without managing infrastructure. With FaaS, code is executed in response to events like user interactions, then shuts down. FaaS takes the PaaS approach further by allowing companies to develop and deploy specific functions that underpin applications and activate them on demand. Key benefits include focusing on code instead of infrastructure and paying only for resources used.