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This video by Cohere AI explains word and sentence embeddings, essential components of large language models. Language models aim to enable computers to understand and process human language, which consists of words, while computers process numbers. Word embeddings translate words into numerical representations, while sentence embeddings do the same for sentences in a meaningful way. This process is not manually conducted; instead, it relies on complex neural networks. These networks analyze the context in which words and sentences appear together, bringing similar items closer in their numerical representation. Ultimately, this approach yields impressive results in language processing.