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This video tutorial from Cohere AI explains word and sentence embeddings, essential components of large language models. Language models aim to help computers understand and process human language, which is word-based, while computers work with numbers. Word embeddings convert words into numerical representations, and sentence embeddings do the same for sentences. This conversion is not done manually; instead, it's facilitated by complex neural networks that analyze context, bringing similar words and sentences closer together in their numerical space. The result is an effective way for computers to comprehend language.