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Simply put, outside the house, it squashes a gas using a compressor to make it hot, removes the heat using fans and stuff, then takes that squashed gas into your house, and lets it go back to being unsquashed. This expansion of gas then absorbs heat (i.e. gets cold!), the absorbed heat can be released again outside by repeating the process.

If you want to see gas absorbing heat when it expands, spray an aerosol for a few seconds and see how cold it gets!

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โˆ™ 2012-05-22 00:02:01
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Q: How does an air conditioner work?
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