An API (application programming interface) allows software components to interact and is usually a library specifying routines, data structures, and more. Direct3D is part of Microsoft's DirectX API used for 3D graphics on Windows and Xbox, exposing capabilities like z-buffering and texture mapping. OpenGL is a cross-platform 3D graphics API managed by Khronos used widely in gaming, VR, and more. The graphics pipeline involves transforming 3D images through stages like projection to produce a 2D screen image from vertex properties.