Thermal interface material?
Its used to fill the microscopic gaps between two surfaces, such as the cpu metal heatspreader and the heatsink, or the gpu core and the gpu heatsink.
Without it the two surfaces only make contact in a few places (although it might be difficult to see with the naked eye) and heat transfer is poor. Thermal compound often contains metal such as silver in tiny particles in a grease which will fill the gaps in the two surfaces and provide good heat transfer.
A lot of people use too much of it and forget that its filling the gaps in the surfaces, not mating them together.