Multiple API's options when creating content-type with strapi generate content-type

Hi, I’m creating content-types via CLI with ‘strapi generate content-type’.
During this process I got a question ‘Where do you want to add this model?’ with the following options:

  1. Add model to new API
  2. Add model to an existing API
  3. Add model to an existing plugin

Didn’t find in the docs what does it mean. It looks like there is a possibility to create different API’s with differnt set of content-types, kind of multi-tenancy?

Strapi 4.0.7 with PostgreSQL.