[proofplan]
We identify cardinals with their initial ordinal representatives and realize the cardinal sum as a disjoint union and the cardinal product as a set of choice functions. First we construct an injection from the disjoint union into the product, so the sum is at most the product. Then we prove, by a diagonal argument, that no map from the disjoint union onto the product can be surjective. This excludes an injection in the opposite direction and therefore gives the strict cardinal inequality.
[/proofplan]
[step:Handle the empty index set separately]
If $I = \varnothing$, then the cardinal sum is $0$ and the cardinal product is $1$, since the empty product is represented by the singleton set containing the empty function. Hence
\begin{align*}
\sum_{i \in \varnothing} \kappa_i = 0 < 1 = \prod_{i \in \varnothing} \lambda_i.
\end{align*}
For the rest of the proof, assume $I \neq \varnothing$.
[/step]
[step:Represent the sum and product by explicit sets]
For each $i \in I$, regard $\kappa_i$ and $\lambda_i$ as initial ordinals. Define the disjoint-union representative of the cardinal sum by
\begin{align*}
S := \{(i,\alpha) : i \in I \text{ and } \alpha \in \kappa_i\}.
\end{align*}
Define the product representative by
\begin{align*}
P := \left\{ f: I \to \bigcup_{i \in I} \lambda_i : f(i) \in \lambda_i \text{ for every } i \in I \right\}.
\end{align*}
Then $|S| = \sum_{i \in I}\kappa_i$ and $|P| = \prod_{i \in I}\lambda_i$ by the definitions of cardinal sum and cardinal product.
[/step]
[step:Inject the disjoint union into the product]
Since $\kappa_i < \lambda_i$ for every $i \in I$, each $\lambda_i$ is nonzero, so $0 \in \lambda_i$ for every $i \in I$. Define
\begin{align*}
E: S &\to P \\
(i,\alpha) &\mapsto E(i,\alpha),
\end{align*}
where $E(i,\alpha): I \to \bigcup_{j \in I}\lambda_j$ is the function
\begin{align*}
E(i,\alpha)(j) :=
\begin{cases}
\alpha + 1, & j = i,\\
0, & j \neq i.
\end{cases}
\end{align*}
This is well-defined: if $\alpha \in \kappa_i$, then $\alpha + 1 \leq \kappa_i < \lambda_i$, hence $\alpha + 1 \in \lambda_i$, and $0 \in \lambda_j$ for $j \neq i$.
The map $E$ is injective. Indeed, if $E(i,\alpha) = E(j,\beta)$ and $i \neq j$, then evaluating at $i$ gives
\begin{align*}
\alpha + 1 = E(i,\alpha)(i) = E(j,\beta)(i) = 0,
\end{align*}
which is impossible for an ordinal successor. Hence $i = j$. Evaluating at this common index gives $\alpha + 1 = \beta + 1$, and therefore $\alpha = \beta$. Thus $|S| \leq |P|$.
[guided]
The purpose of this step is to prove the non-strict inequality
\begin{align*}
\sum_{i \in I}\kappa_i \leq \prod_{i \in I}\lambda_i.
\end{align*}
Since we are using explicit representatives, it is enough to build an injection $S \to P$.
Because $\kappa_i < \lambda_i$, the ordinal $\lambda_i$ is nonzero for every $i \in I$, so every coordinate set $\lambda_i$ contains $0$. We encode an element $(i,\alpha)$ of the disjoint union by a function that is zero everywhere except at the $i$th coordinate. At the $i$th coordinate we use $\alpha + 1$ rather than $\alpha$, so that different summands cannot collide at the all-zero function. Define
\begin{align*}
E: S &\to P \\
(i,\alpha) &\mapsto E(i,\alpha),
\end{align*}
where
\begin{align*}
E(i,\alpha)(j) :=
\begin{cases}
\alpha + 1, & j = i,\\
0, & j \neq i.
\end{cases}
\end{align*}
This function belongs to $P$: for $j \neq i$ we have $0 \in \lambda_j$, while for $j = i$ the inequality $\alpha \in \kappa_i$ implies $\alpha + 1 \leq \kappa_i < \lambda_i$, so $\alpha + 1 \in \lambda_i$.
Now suppose $E(i,\alpha) = E(j,\beta)$. If $i \neq j$, then evaluating both functions at the coordinate $i$ gives
\begin{align*}
\alpha + 1 = E(i,\alpha)(i) = E(j,\beta)(i) = 0,
\end{align*}
contradicting the fact that $\alpha + 1$ is a successor ordinal and hence nonzero. Therefore $i = j$. Evaluating at this same index gives $\alpha + 1 = \beta + 1$, and cancellation of ordinal successors gives $\alpha = \beta$. Thus $E$ is injective, and so $|S| \leq |P|$.
[/guided]
[/step]
[step:Diagonalize against every map from the sum to the product]
Let
\begin{align*}
F: S \to P
\end{align*}
be any map. For each $i \in I$, define the $i$th coordinate restriction
\begin{align*}
F_i: \kappa_i &\to \lambda_i \\
\alpha &\mapsto F(i,\alpha)(i).
\end{align*}
Since $\kappa_i < \lambda_i$, the map $F_i$ cannot be surjective. Therefore the set $\lambda_i \setminus F_i[\kappa_i]$ is nonempty. Because $\lambda_i$ is an ordinal, it is well-ordered, so define
\begin{align*}
a_i := \min(\lambda_i \setminus F_i[\kappa_i])
\end{align*}
for each $i \in I$. Define
\begin{align*}
a: I &\to \bigcup_{i \in I}\lambda_i \\
i &\mapsto a_i.
\end{align*}
Then $a \in P$.
We claim that $a \notin F[S]$. If $a = F(i_0,\alpha_0)$ for some $(i_0,\alpha_0) \in S$, then evaluating at $i_0$ gives
\begin{align*}
a_{i_0} = a(i_0) = F(i_0,\alpha_0)(i_0) = F_{i_0}(\alpha_0).
\end{align*}
This contradicts the definition of $a_{i_0}$ as an element of $\lambda_{i_0} \setminus F_{i_0}[\kappa_{i_0}]$. Hence no map $F:S \to P$ is surjective.
[guided]
We now prove the strict part by showing that every map from the disjoint union $S$ into the product $P$ misses at least one point of $P$. Fix an arbitrary map
\begin{align*}
F: S \to P.
\end{align*}
For each index $i \in I$, we inspect only the $i$th summand of $S$ and only the $i$th coordinate of the output. This gives a map
\begin{align*}
F_i: \kappa_i &\to \lambda_i \\
\alpha &\mapsto F(i,\alpha)(i).
\end{align*}
The hypothesis $\kappa_i < \lambda_i$ means that no function from a set of cardinality $\kappa_i$ can cover a set of cardinality $\lambda_i$. Therefore $F_i$ is not surjective, so there exists at least one element of $\lambda_i$ not hit by $F_i$.
To choose the missed value canonically, use the fact that $\lambda_i$ is an ordinal and hence well-ordered. Define
\begin{align*}
a_i := \min(\lambda_i \setminus F_i[\kappa_i]).
\end{align*}
This gives one missed value in each coordinate. Now assemble these missed values into a single product element:
\begin{align*}
a: I &\to \bigcup_{i \in I}\lambda_i \\
i &\mapsto a_i.
\end{align*}
Since $a_i \in \lambda_i$ for every $i \in I$, the function $a$ belongs to $P$.
We show that $a$ is not in the range of $F$. Suppose, toward a contradiction, that $a = F(i_0,\alpha_0)$ for some $(i_0,\alpha_0) \in S$. Then the $i_0$th coordinate of this equality says
\begin{align*}
a_{i_0} = a(i_0) = F(i_0,\alpha_0)(i_0) = F_{i_0}(\alpha_0).
\end{align*}
But $a_{i_0}$ was chosen outside the image $F_{i_0}[\kappa_{i_0}]$, while the displayed equality places it inside that image. This contradiction proves that $a \notin F[S]$. Since $F$ was arbitrary, no map $S \to P$ is surjective.
[/guided]
[/step]
[step:Convert the diagonal obstruction into strict cardinal inequality]
We have shown that $|S| \leq |P|$. It remains to rule out $|P| \leq |S|$. Suppose, toward a contradiction, that there is an injection
\begin{align*}
G: P \to S.
\end{align*}
Let
\begin{align*}
z: I &\to \bigcup_{i \in I}\lambda_i \\
i &\mapsto 0
\end{align*}
be the zero element of $P$. Define
\begin{align*}
H: S &\to P
\end{align*}
by setting $H(s)$ equal to the unique $p \in P$ such that $G(p)=s$ when $s \in G[P]$, and setting $H(s)=z$ when $s \notin G[P]$. Since $G$ is injective, this definition is unambiguous. Moreover, for every $p \in P$,
\begin{align*}
H(G(p)) = p,
\end{align*}
so $H$ is surjective. This contradicts the previous step, which showed that no map $S \to P$ is surjective. Hence $|P| \nleq |S|$.
Combining $|S| \leq |P|$ with $|P| \nleq |S|$, we obtain
\begin{align*}
|S| < |P|.
\end{align*}
Using $|S| = \sum_{i \in I}\kappa_i$ and $|P| = \prod_{i \in I}\lambda_i$, this is exactly
\begin{align*}
\sum_{i \in I}\kappa_i < \prod_{i \in I}\lambda_i.
\end{align*}
[/step]