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The video tutorial from Cohere AI discusses word and sentence embeddings, which are essential for large language models. These embeddings enable computers to understand and process language by converting words and sentences into numerical representations. Each word is associated with a list of numbers, and the same applies to sentences, forming meaningful relations. This process is not manually conducted; instead, it relies on complex neural networks that analyze context. As words or sentences appear in similar contexts, the model brings their numerical representations closer together. Ultimately, this approach yields impressive results in language understanding.