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I am failing to understand the difference and use of Azure Active Directory and Tenant. Subscriptions are services running under a tenant. But I can't understand the relationship between multi-tenant subscriptions or how directories are related to tenants Please help.

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A tenant is a dedicated instance of an Azure AD directory that your organization receives when it signs up for a Microsoft cloud service such as Azure or Office 365. https://docs.microsoft.com/en-us/azure/active-directory/fundamentals/active-directory-whatis

Each Azure tenant has a dedicated and trusted Azure AD directory. The Azure AD directory includes the tenant's users, groups, and apps and is used to perform identity and access management functions for tenant resources.