With AQ you can figure you are ~50/50 if he has an underpair, or better if he has something like KQ or AJ. The only hands you really have to worry about are AA, KK, QQ, and AK but I would think that the chip leader on the button might just limp (or put up a small raise, trying to draw you all-in) if he had a hand like that. To me it looks like he's trying to take down the blinds and/or has a weak pair or a decent drawing hand at best (the read would depend on his style of play). Either way you at least have an even chance, I'd call no question with AQ.

Given the size of your stack and WLS's if you let him pull that move and take the blinds a couple more times you're basically all done, so I would challenge him while I had a "monster" hand and a decent stack.