Amazon Aurora I/O-Optimized is a new cluster configuration that provides improved price performance and predictable pricing for I/O-intensive workloads. This video explains the benefits of Aurora I/O-Optimized, including zero charges for read and write I/O operations, improved performance, and potential cost savings of up to 40% for customers with high I/O usage. The presenter demonstrates how to set up Aurora I/O-Optimized using the AWS console and CLI, and discusses compatibility with various Aurora versions and instance types. This configuration offers a more stable and predictable billing model for customers struggling with fluctuating I/O charges in their Aurora database costs.