The article discusses defining models for request handling, database storing, and response generation using Pydantic in FastAPI. It builds upon the previous installment's focus on handling data from requests. By utilizing Pydantic models, FastAPI allows for the conversion of JSON data received in a Post request directly into a Pydantic model. This approach streamlines the process of receiving and handling request data within FastAPI, enhancing the efficiency and effectiveness of data management in the development environment.