I try to understand what is meant by the expression that $\mathbb{A}^1 \setminus \{0\}$ is the underlying variety of the multiplicative group $\mathbb{G}_m$ over the field $K$ .
I know that
$\mathbb{G}_m$ is the algebraic group over $K$ whose group action is given by multiplication $$\mu(x,y)=x \cdot y ~~~ \text{ and } ~~~ \iota(x)=x^{-1}$$
we can define $\mathbb{G}_m =$ Spec$(K[T, T^{-1}])$, i.e. it is an affine variety
$\mathbb{G}_m$ is the functor sending a $K$-scheme $X$ to the multiplicative group of invertible global sections of the structure sheaf, i.e. $\mathbb{G}_m(X)= \mathcal{O}_X(X)^*=K^*$
But what exactly is meant by the above expression? Thank you for your explanations!
(EDIT: In this post How is the multiplicative group an algebraic variety? they even use it as an identity.)