I have a 10^7 lines file, in which I want to choose 1/100 of lines randomly from the file. This is the AWK code I have, but it slurps all the file content before hand. My PC
The problem of how to uniformly sample N elements out of a large population (of unknown size) is known as Reservoir Sampling. (If you like algorithms problems, do spend a few minutes trying to solve it without reading the algorithm on Wikipedia.)
A web search for "Reservoir Sampling" will find a lot of implementations. Here is Perl and Python code that implements what you want, and here is another Stack Overflow thread discussing it.