A serverless architecture in cloud computing refers to a model where developers create and run applications without managing the underlying infrastructure. In this setup, cloud service providers handle the server management, scaling, and maintenance, allowing developers to focus on writing code and deploying applications. Serverless architecture typically operates on a pay-as-you-go pricing model, which means that users only pay for the computing resources used during execution. This approach simplifies application development, accelerates deployment, and enhances scalability, making it an attractive option for businesses aiming for agility and cost-effectiveness in their operations.