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The video tutorial from Cohere AI discusses word and sentence embeddings, crucial components of large language models. These embeddings transform words and sentences into numerical representations, enabling computers to understand and process language. Since computers operate with numbers, word embeddings associate each word with a vector of numbers, while sentence embeddings do the same for sentences, ensuring meaningful relationships. This process is not manually curated; instead, it utilizes complex neural networks that analyze context, bringing similar words and sentences closer together in their numerical representation. Ultimately, this approach yields impressive results in natural language understanding.