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This video tutorial from Cohere AI discusses word and sentence embeddings, which are essential components of large language models. These embeddings enable computers to understand and process language by converting words and sentences into numerical representations. Each word is associated with a list of numbers, and sentence embeddings do the same for sentences. This process is automated through a neural network that analyzes the context in which words or sentences appear together, bringing them closer together in the numerical space based on their usage. The result is a nuanced understanding of language that yields impressive outcomes.