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This video tutorial from Cohere AI discusses word and sentence embeddings, which are essential for large language models. Language models aim to enable computers to understand language, but since computers process numbers, word embeddings convert words into numerical representations. Each word is linked to a list of numbers, while sentence embeddings do the same for sentences. This process isn't done manually but by a computer using a neural network. The model analyzes context, bringing together words or sentences that appear in similar contexts. This results in effective numerical representations, producing impressive outcomes in language processing.