An API in cloud computing stands for Application Programming Interface and serves as a bridge that allows different software applications to communicate with each other. APIs enable developers to connect various services, retrieve data, and perform functions seamlessly within cloud environments. They streamline interactions between the cloud infrastructure and client applications, offering flexibility and scalability. Additionally, APIs help enhance user experiences by allowing seamless integrations, such as accessing third-party services or applications. Thus, APIs play a crucial role in enabling interoperability and functionality within cloud ecosystems.