Raspberry Pi is a small single board computer that acts like a mini personal computer when connected to peripherals like a keyboard, mouse, and display. It is commonly used for real-time image/video processing, IoT applications, and robotics. While slower than a laptop or desktop, it provides full computer functionality at low power consumption. The Raspberry Pi Foundation provides the Debian-based Raspbian OS as well as NOOBS for installation. Raspberry Pi has advantages over Arduino like greater processing power, internet connectivity, and ability to perform complex tasks, making it better suited for applications requiring those capabilities. However, Arduino remains cheaper and is well-suited for beginners and simpler applications.