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This video tutorial from Cohere AI discusses word and sentence embeddings, which are essential for large language models. The concept revolves around converting words into numerical representations, allowing computers to understand language. Word embeddings associate each word with a list of numbers, while sentence embeddings do the same for sentences, ensuring meaningful representation. This process is not manually performed but is executed by a neural network model that analyzes the context in which words and sentences appear together. As a result, words that share similar contexts are mapped closer together, leading to significant advancements in language processing.